Government and Thai central bank at odds over economic management

23 Sept 06:15 Key points summarised by AI

Prime Minister Srettha Thavisin publicly criticized the Bank of Thailand (BOT) for maintaining high interest rates (2.5%), asserting it hinders economic recovery and burdens small businesses.
The dispute raises concerns about government interference in monetary policy, especially as the BOT governor previously voiced opposition to the government's expansive digital wallet stimulus scheme.
The market keenly anticipates the BOT's Monetary Policy Committee meeting on February 7, where the decision on interest rates will either reinforce central bank independence or potentially yield to calls for a rate cut amid slow economic growth.
Despite optimistic forecasts for economic growth driven by exports and tourism, global geopolitical risks, particularly escalating tensions in the Red Sea, threaten to disrupt trade and impact oil prices, posing challenges to Thailand's recovery.

Thailand secures US$200m World Bank loan for clean energy and low carbon cities

Yesterday 09:24 Key points summarised by AI

Thailand secured a US$200 million loan from the World Bank to significantly invest in clean energy and low-carbon urban development initiatives.
The program aims to drive clean energy funding and low-carbon growth, ensuring a just transition for small and medium-sized enterprises, workers, farmers, and local communities.
Channelled through the Export-Import Bank of Thailand, the loan will fund energy efficiency upgrades in public buildings and industrial areas, including rooftop solar installations and electrical system modernizations, reducing initial capital burdens via Energy Service Companies (ESCOs).