Thai Premier’s Rift With Central Bank Is Spooking Markets

• At the heart of the tensions is Srettha’s plan to turbo-charge Southeast Asia’s second-largest economy by ramping up spending, subsidies and wages — the centerpiece of which is a $15 billion cash handout program. Bank of Thailand Governor Sethaput Suthiwartnarueput has called such spending “inappropriate.”
• Just days before meeting the prime minister, the central bank raised interest rates to the highest level since 2013 as a preemptive action to ward off inflation pressure partly from the stimulus.
• A day after the meeting, Srettha signaled a preference for a weak currency to help exports and tourism — the bedrocks of Thailand’s economy. Hours later, the BOT said it would intervene to curb extreme currency volatility.

External Link : https://www.bloomberg.com/news/articles/2023-10-05/thai-prime-minister-s-rift-with-central-bank-is-spooking-markets