Thailand Finance Minister Cites Limited Economic Ammunition

Thailand is currently navigating a period of economic uncertainty with restricted fiscal tools, Finance Minister Ekniti Nitithanprapas stated on Friday. The minister noted that the government's capacity to intervene is limited by available resources. > "Thailand has limited ammunition to address its economic problems." To mitigate these issues, the government is set to approve soft loans for solar panel installations and is considering a new car trade-in scheme. Furthermore, the budget for the upcoming fiscal year will prioritize essential services by cutting unnecessary expenditures. Support for vulnerable groups will be a primary focus during a special cabinet meeting scheduled for Saturday. To address rising energy costs, the government is planning a borrowing guarantee for an oil subsidy fund. This initiative aims to provide a buffer against price spikes in West Texas Oil and Brent Crude Oil. On the monetary side, Central bank Governor Vitai Ratanakorn announced that the policy interest rate will be held at 1.00%. The central bank anticipates that economic growth could slow to between 1.3% and 1.7% this year, while inflation may rise to a range of 2.5% to 3.5%, largely depending on the impact of the ongoing conflict in the Middle East.