Bangkok: Thai Commerce Minister, Mr. Pichai Naripthaphan, expressed his gratitude towards the Monetary Policy Committee (MPC) for the recent reduction in interest rates and voiced his hope for further decreases to aid economic recovery and enhance competitiveness in the export sector.
According to Thai News Agency, Mr. Pichai highlighted the positive impact of the MPC’s decision to lower the policy interest rate by 0.25% to 2.25%, emphasizing the relief it brings to households and businesses amid challenging economic conditions. He pointed out that such a reduction alleviates around 40 billion baht of household debt and decreases the government’s annual interest expenses by approximately 30 billion baht from its 11 trillion baht debt.
The minister elaborated on the benefits of a weaker baht, which could potentially boost the vital export and tourism sectors that contribute 70-80% of Thailand’s GDP. In addition to fostering investment, Mr. Pichai is optimistic about the future of Thai economic policies, part
icularly in supporting the export industry by maintaining competitive currency levels. He also expressed his anticipation for another rate cut in the near future to sustain this momentum.
Mr. Wichit Arayaphisit, an investment strategist at Liberator Securities, also commented on the situation, noting that the positive trajectory of Thai stocks is expected to persist throughout the year. He attributed this optimism to several factors, including the MPC’s rate cuts, the government’s economic stimuli, and various funds such as the Vayupak and Thai ESG Funds, which have seen positive fund flows recently. Mr. Wichit believes that these developments create a stable financial environment conducive to investment, particularly in stocks that will benefit from the domestic economy.