％Germany Government Bond 10Y
DE-10Y
Mentioned
Impact on stocks 2
Others
％ECB rates
ECBRATES
Mentioned
Bank of Thailand Refuses Further Rate Cuts, Citing Structural Economic Issues
Macro
The Bank of Thailand (BOT) has confirmed it will not lower its policy interest rate further from the current level of 1%, as it deems this rate appropriate and still has room to cut by 0.5% if an economic crisis occurs. BOT Governor Sethaput Suthiwartnarueput stated that quantitative easing (QE) measures would not be effective for Thailand because its financial system structure relies primarily on financial institutions. Meanwhile, the BOT may consider supplementary tools, such as reducing contributions to the Financial Institutions Development Fund (FIDF), which previously helped lower lending rates by 0.4%. However, rate cuts cannot address the real structural problems of the Thai economy, such as education quality, an aging society, high household debt, and corruption, which require serious government-led reforms.