Thai Rate Panel Warns Against Broad Economic Stimulus as War Unfolds

Thailand’s central bank cautioned against broad consumption stimulus, saying such a move could constrain fiscal flexibility as the economic fallout from the Middle East conflict continues to unfold.

Members of Bank of Thailand’s Monetary Policy Committee, which voted to hold the rate at a near four-year low last month, viewed consumption-led measures as offering only temporary support, according to minutes of its April meetings released on Wednesday. Instead, policymakers should prioritize structural transformation, while preserving fiscal space amid heightened global uncertainty, it said.