Thai PM Quells Concerns of Government-Central Bank Rift

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Thai PM Quells Concerns of Government-Central Bank Rift
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Thai Prime Minister Srettha Thavisin sought to assuage fears about growing differences between fiscal and monetary policymakers, saying he and central bank Governor Sethaput Suthiwartnarueput met Monday to discuss matters related to the economy.

“It was a matter of two adults talking and talking well,” he told reporters after meeting with the Bank of Thailand chief. “There will be a meeting like this on a monthly basis,” Srettha had said earlier in a post on X, formerly known as Twitter.

“We are both adults, so we can’t agree with each other on everything,” said Srettha, who repeatedly said that there was no conflict. “We need to listen to each other and continue the talks.” The BOT has been vocal about the need for policy normalization based on its assessment that the economy has momentum amid a rebound in tourism. While Sethaput has opined that the economy needs policies to attract investment and not measures to boost consumption, the rate-setting panel he heads has signaled it’s ready to pause rate hikes, and that future actions will depend on factors inlcuding upside risks from the government’s economic policies.

“We don’t have any conflicts with the central bank,” said Paopoom Rojanasakul, secretary to the finance minister, adding to the government chorus.

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