Bangkok, Analysts estimate that even though the MPC has not held a special meeting as the Prime Minister called for a 0.25 satang interest rate cut, it is expected that there will be a policy rate cut in the first half of this year. Mr. Kornpat Worachet, Director of Research and Investment Services at Krungsri Patanasin Securities, expects that the Monetary Policy Committee (MPC) is unlikely to hold a special meeting. As the Prime Minister called for a special meeting Before the next meeting that the MPC has scheduled for 10 April, it asks for the policy interest rate to be reduced to stimulate the economy from 2.50 percent to 2.25 percent, but in a context where inflation is not depressed. Meanwhile, the direction of world interest rates tends to decrease, such as US interest rates. including bond auctions The latest government has high demand and lower returns. These things make it expected that Interest rate policy is likely to be relaxed and we may see the MPC reduce interest rates within the first half of this year. Mr. Setthaput Suthiwatnarueput The Governor of the Bank of Thailand (BoT) gave an interview to foreign media Nikkei Asia emphasizing that there is no need to hold a special meeting of the Monetary Policy Committee (MPC) to consider reducing the policy interest rate which is currently at 100%. 2.50 that even though Thai inflation has been negative for 4 consecutive months and Thai GDP in 2023 expanded by 1.9 percent, monetary policy It doesn't help much in solving economic problems. Because the Thai economy comes from structural problems. If the Monetary Policy Committee (MPC) cuts interest rates, it will not make Chinese tourists spend more. or causing China to import more petrochemicals from Thailand or make the government use the budget faster Because these are factors that cause the Thai economy to grow slowly. Mr. Settha Thavisin, Prime Minister and Minister of Finance, said about the matter: It is the right of the BoT Governor because the BoT is an independent agency. The government is no t your direct supervisor. But confirm that what is called for is reasonable. And the time is right to have an appointment with the Governor of the BoT to discuss. In the past, he had asked for interest rate reductions 3 times, but he confirmed that he would continue to demand for the 4th and 5th times, despite having different opinions. But they can live together. without arguing with each other Or is it an atmosphere that is not suitable for working together? along with emphasizing the relationship with the governor The BoT said they would still respect each other. 'You have to keep talking and keep trying, with reason and results. Various economic indicators It indicates many things: 2.5% still has a lot of room left. If there is a crisis, 0.25% is not something that will prevent policies from being moved,' Mr. Settha said. Yesterday (21 Feb.), the BoT published the minutes of the Monetary Policy Committee (MPC) meeting on 7 Feb. in which the board voted 5 to 2 to maintain the policy interest rate at 2.50 % per year. Most agree that maintaining the policy interest rate at a neutral interest rate will help support sustainable economic expansion. and assess that the expansion of the Thai economy is likely to slow down. It is a result of foreign factors and structural problems. Meanwhile, domestic demand continues to gain momentum. and inflation is likely to gradually increase towards the target range Monetary policy operations going forward It will be considered appropriate to the economic and inflation trends. Source: Thai News Agency