PM takes swipe at BOT, as commercial banks reduce lending rates

In a speech listing his government’s achievements since it took office 10 months ago, he pointed out that his administration was successful in urging the country’s four major commercial banks to slash their lending rates to help ease the burden on borrowers.

“Even though the Bank of Thailand governor insists on his independence from the government, he is not free from [responsibility over] the suffering of the people,” the premier said at the ruling party’s headquarters.

Bank of Thailand governor Sethaput Suthiwartnarueput has defied mounting pressure, especially from the prime minister, to cut the policy interest rate.

The central bank decided to maintain the key interest rate at 2.5% in its latest policy meeting in April despite intense pressure from the government to lower interest rates.

Sethaput has insisted that the central bank makes its interest rate decisions independently. “I think the governance framework for that is quite clear … the decisions that have been made indicate that they are taken on the basis of [what] we feel is the most appropriate for the economy, rather than considerations about trying to ease political or other pressures,” he told CNBC earlier this week.

Bangkok Bank, Krungthai Bank, Kasikornbank, and Siam Commercial Bank reduced their loan interest rates by 0.25% in response to the prime minister’s call to ease the burden on bank customers.

Srettha also said on Friday that his government has been diligently tackling the many problems facing the country, including security in the deep South, low prices of agricultural goods, PM2.5 pollution and illegal lenders.

“There are many more policies that need to be implemented during the remaining three years of the government,” he said.