Kbank CEO backs MPC’s decision to maintain 2.5% policy interest rate

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BANGKOK, 22 August 2013 Chief Executive Officer of Kasikornbank Banthoon Lamsam has voiced his support for the Monetary Policy Committee (MPC)’s decision to keep the policy interest rate at 2.5 percent, while expressing concerns over the delay in the government’s mega projects. 

According to Mr. Banthoon, the MPC has made the right decision to maintain the policy interest rate at 2.5 percent although many economists said the committee should have adjusted down the rate as the economy had been slow. He pointed out that if the FPO did lower the rate, Thailand could face an economic bubble.

He also expressed his concerns over the government’s mega projects, saying if the budget is not approved soon, the country’s economy for this year might grow less than 4 percent.

The CEO also warned all entrepreneurs to keep a close watch on the economic situation in order to be prepared for future changes, while urging the private sector to improve the quality of their products and produce goods that are in market demand.