Prime Minister Srettha Thavisin insists that he hasn't even considered the idea of firing Bank of Thailand Governor Sethaput Suthiwartnarueput or changing the Bank of Thailand Act to limit the central bank’s independence.
The prime minister made this statement during his visit to Maha Sarakham and Roi-et provinces yesterday, amid speculation that Sethaput might be dismissed following claims from Pheu Thai party leader Paetongtarn Shinawatra that the central bank’s independence hinders the government’s efforts to enhance the national economy.
Srettha did acknowledge that there are differing views between the government and the central bank regarding the interest rate, which, he emphasized, is quite normal.
The central bank has resisted the government’s request to decrease the policy rate by 25 basis points, from the current 2.5%, to ease the financial burden on businesses and the public.
State-run and private commercial banks, however, have agreed to lower their lending rates by 0.25% for six months, after the prime minister held informal discussions with four top bankers.
During his trip to Roi-et province, which is a major source of Kula Ronghai Hom Mali rice, the prime minister emphasized the necessity for the ongoing development of the rice strains and increases in productivity, as well as improvement of irrigation systems.