Finance Minister wants policy rate down more than 0.25%

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Finance Minister Kittirat Na Ranong has said he views that the policy interest rate should be reduced more than 0.25% in order to tackle the strength of the Thai baht. 

Mr. Kittirat, speaking about the looming Monetary Policy Committee meeting on May 29, said he proposed that the MPC reduce the policy rate in excess of 0.25%, from the current rate of 2.75%, in order to afflict real effects on the strength of the baht.

Mr. Kittirat said although the baht has depreciated somewhat, it remains to be seen whether this will be enough to facilitate economic expansion.

Speaking about Monday’s meeting between economic agency representatives and Prime Minister Yingluck Shinawatra, Mr. Kittirat said he expressed the view that the Thai economy is growing better, and this growth will be buoyed by this year’s water management projects and next year’s infrastructure megaprojects.