Bangkok: Ms. Sirikanya Tansakul, MP and deputy leader of the Prachachon Party, shared her views on Mr. Vitai Ratanakorn, the newly appointed governor of the Bank of Thailand (BOT), highlighting his competence and expertise. She expressed admiration for his successful initiative to introduce a Government Savings Bank subsidiary into the car registration loan market, which has fostered competition and led to reduced interest rates on these loans.

According to Thai News Agency, Ms. Sirikanya emphasized that while Mr. Vitai’s efforts in reducing interest rates are commendable, they alone will not suffice in spurring economic growth. Despite a recent reduction in the BOT’s interest rate to 0.75%, retail lending rates have not seen corresponding decreases. She pointed out that even the Government Savings Bank, previously managed by Mr. Vitai, has only slightly reduced interest rates. Ms. Sirikanya stressed the need for commercial and state banks to follow suit and lower their interest rates to ensure that the policy effectively benefits the public, alleviating their financial burdens and encouraging increased lending activities.

Ms. Sirikanya further identified the economic downturn as the foremost challenge awaiting Mr. Vitai. She noted that managing the slowdown in the economy is crucial for the BOT’s monetary policy effectiveness. Although the BOT has reduced interest rates multiple times, Ms. Sirikanya warned that the margin for further reductions is limited and stressed the importance of employing targeted and integrated policies to stabilize the financial system and address exchange rate fluctuations.