Pichai criticises Sethaput for a statement to the media on interest rate

Finance Minister Pichai Chunhavajira has taken strong exception to a statement made by Bank of Thailand (BOT) Sethaput Suthiwartnarueput to foreign media that there would be no further cuts in interest rates. 

In an interview with Bloomberg Television, Sethaput said that the Monetary Policy Committee (MPC) of Thailand may not lower the policy interest rate beyond the recent 25 basis points reduction. 

Pichai, who is also deputy prime minister, said that he believes the central bank governor should have kept this policy to himself, as making such information public could put traders at an advantage or disadvantage.

When asked whether the government has expressed a desire for continuous interest rate cuts, Pichai said that they wanted it to align with the situation, and decisions on increasing or lowering rates should not be discussed too openly.

Regarding the scheduled meeting with the BOT to discuss the inflation target framework, Pichai confirmed that the date had been set and would take place in the next few days. 

While the BOT has expressed its intent to maintain the inflation target at 1-3%, Pichai said this was a matter that needed to be discussed rationally, using past data as a basis for the conversation.