Thailand's Central Bank Has a Major Dilemma: Its Currency
- Finance secretary called for interest-rate cut amid baht surge
- Central bank governor defends policy ahead of Sept. 27 meeting
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A public rift between Thailand’s central bank and government on interest rates shows just how much of a dilemma the baht has become for the economy.
The Finance Ministry is pushing the Bank of Thailand to cut interest rates to stimulate growth, in light of the strength of the currency and low inflation. That’s clashing with the bank’s aims of minimizing financial instability and curbing household debt levels by keeping rates steady.