IMF calls for Thai rate cut to support inflation, ease debt load
A further reduction in Thailand’s policy interest rate will help shore up low inflation and ease the burden for local borrowers, according to the International Monetary Fund (IMF).
The Bank of Thailand's Monetary Policy Committee will hold a meeting on the policy rate next week. Photo courtesy of Bank of Thailand.
In a statement on Friday, the organization welcomed the Bank of Thailand's (BoT) decision in October to cut the policy rate and recommended a further reduction to support inflation and improve borrowers’ debt-servicing capacity.
Thailand’s household liabilities have ballooned to $486 billion from around $400 billion in early 2019.
Earlier, Prime Minister Paetongtarn Shinawatra appealed for a rate cut after last year’s 2.5% growth came below economists’ estimates.
Given remaining high uncertainty in the outlook, the authorities should stand ready to adjust their monetary policy stance in a data and outlook-dependent manner, the IMF said.
The BoT kept the policy rate steady at 2.25% in December after a surprise quarter-point cut in October. Its Monetary Policy Committee is due to meet on February 26 to review the interest rate.
The IMF maintained its 2025 GDP growth projection for Thailand at 2.9%. Risks are tilted to the downside amid escalating global trade tensions, increased commodity price volatility and local private sector debt overhang, it added.
- Read More
Thailand unveils AI-, IoT-based smart agriculture platform
Thailand has launched a new smart farming platform named “HandySense B-Farm” which harnesses the power of smart sensors, artificial intelligence (AI) and Internet of Things (IoT) to help farmers control and manage their farms efficiently.
Southeast Asia - Mon, February 24, 2025 | 10:33 pm GMT+7
Indonesia strives to escape middle-income trap
Indonesian Minister of National Development Planning (PPN) Rachmat Pambudi has said Indonesia needs to transform its economy to escape the middle-income trap and achieve the Golden Indonesia Vision by 2045.
Southeast Asia - Mon, February 24, 2025 | 10:32 pm GMT+7
Indonesia seeks waste management technology
Indonesian Environment Minister Hanif Faisol Nurofiq informed that his ministry has held discussions with various parties to explore the potential for funding cooperation for the procurement of waste management technology.
Southeast Asia - Mon, February 24, 2025 | 10:31 pm GMT+7
Explosions shake southern Thailand ahead of former PM Thaksin’s visit
Bomb blasts hit Thailand’s southern provinces just before former Prime Minister Thaksin Shinawatra’s visit on Sunday.
Southeast Asia - Mon, February 24, 2025 | 10:13 pm GMT+7
Vietnam's commercial banks upbeat to book high profits for 2025
As the annual shareholders' meeting season is approaching, Vietnamese banks are unveiling optimistic profit targets for 2025 on the expectation of strong economic growth and credit recovery.
Southeast Asia - Mon, February 24, 2025 | 10:03 pm GMT+7
Criteria for evaluation of FDI efficiency in Vietnam issued
A set of 42 criteria for the evaluation of foreign direct investment (FDI) efficiency in Vietnam has been released following the issuance of prime ministerial Decision 315/QD-TTg.
Southeast Asia - Mon, February 24, 2025 | 9:48 pm GMT+7
Vietnamese goods gains competitive edge in Dutch market
Vietnam's exports will continue to enjoy a strong competitive advantage in the Dutch market due to tariff reductions under the EU-Vietnam Free Trade Agreement (EVFTA), according to the Vietnam Trade Office in the Netherlands.
Southeast Asia - Mon, February 24, 2025 | 9:38 pm GMT+7
Thailand to boost medical economy
Smart investment in the medical and wellness industry will generate a substantial proportion of the national income this year, said Thai Public Health Minister Somsak Thepsutin.
Southeast Asia - Mon, February 24, 2025 | 9:35 pm GMT+7
Singapore places high-stake bet on semiconductor industry
Singapore is doubling down on the industry that sparked the global trade war, according to Bloomberg.
Southeast Asia - Mon, February 24, 2025 | 9:32 pm GMT+7
Central Vietnam city auctions 'golden' land related to convicted real estate tycoon
A prime land plot located at the center of Danang city, which was previously linked to the case of real estate tycoon Phan Van Anh Vu (also known as Vu 'Nhom'), is being auctioned with a starting price of VND59.2 million ($2,319) per square meter.
Real Estate - Mon, February 24, 2025 | 8:00 pm GMT+7
De Heus, Vietnam partners start 3 agricultural projects worth $24 mln
Dutch agribusiness De Heus and its Vietnamese partners kicked off the construction of three agricultural projects worth VND620 billion ($24.3 million) in the southern province of Tay Ninh on Monday.
Companies - Mon, February 24, 2025 | 4:58 pm GMT+7
Northern Vietnam province urges Huawei to invest in semiconductors, training
Bac Ninh, the biggest recipient of registered foreign direct investment (FDI) in Vietnam in 2024, has urged Chinese giant Huawei to invest in the province, especially in semiconductors and workforce training.
Companies - Mon, February 24, 2025 | 4:55 pm GMT+7
Vietnam's PV Gas Pipe inks comprehensive cooperation deal with S Korea's Nexteel
PV Gas Pipe, a member company of PV Gas, signed a memorandum of agreement (MoA) with South Korean steel pipe manufacturer Nexteel Co., Ltd., in Ho Chi Minh City last week.
Companies - Mon, February 24, 2025 | 2:58 pm GMT+7
Vietnamese firms should prioritize product differentiation over price-based competition: RMIT experts
Vietnamese businesses should prioritize digital transformation over price-based competition, and strengthening online presence and adapting to the evolving e-commerce environment are essential, write Dr Scott McDonald, a lecturer, and Dr Nguyen Manh Hung, a senior program manager, at RMIT Vietnam.
Consulting - Mon, February 24, 2025 | 1:11 pm GMT+7
Construction of Hanoi’s fifth metro line to kick off in 2025
Hanoi’s metro line No. 5, connecting Van Cao street in Ba Dinh district to the Hoa Lac area in Thach That district, is expected to break ground this year, with a total investment of over VND65 trillion ($2.55 billion).
Infrastructure - Mon, February 24, 2025 | 1:02 pm GMT+7
Petrovietnam to complete central processing platform for Block B project in 2025
Petrovietnam and its technical arm PTSC aim to build and install various key facilities of the mega Block B gas project by end-2025, the state-owned energy giant said last week.
Energy - Mon, February 24, 2025 | 11:37 am GMT+7
