BOT Governor Withai on Economic Stability and Stimulus Role

Matichon•Economy•18d ago

Reader Briefing

Bank of Thailand Governor Withai Ratanakorn asserts the central bank's role is to maintain stability and solve structural issues rather than leading economic stimulus.

•Withai Ratanakorn spoke on September 3 at the Beyond ESG THAILAND TRANSITION event.
•The Bank of Thailand's primary duties cover price stability, financial institution stability, and payment system stability.
•Thai GDP is projected to grow by 2.3% in 2026, which is below the potential GDP of 2.7%.
•The Bank of Thailand is implementing targeted financial measures in four areas: debt resolution, credit inclusion, grey money, and corruption.

Overview

•Withai Ratanakorn stated on September 3 that the Bank of Thailand is not responsible for leading economic stimulus but focuses on solving structural problems.
•Withai Ratanakorn projected Thai economic growth at 2.3% for the year 2026, noting a downward trend in growth rates since the 1997 crisis.
•Withai Ratanakorn identified three dimensions of stability currently in good condition: price stability (inflation 1-3%), financial institution stability (capital adequacy ratio at 20%), and the QR payment system.
•Withai Ratanakorn explained that Quantitative Easing (QE) cannot be used in Thailand because liquidity would flow back into the bond repurchase market without stimulating the real economy.
•Withai Ratanakorn warned that if the economy remains stagnant, it will lead to decreased income for citizens and businesses, resulting in high non-performing loans (NPLs).
•The Bank of Thailand has implemented targeted measures including debt restructuring for over 100,000 accounts and stricter controls on cash transactions exceeding 5 million baht.
•Withai Ratanakorn emphasized the need to regulate Non-Bank businesses as they now hold a significant share of retail loan accounts and value compared to commercial banks.

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Key Quotes

Withai Ratanakorn

"It is not the duty of the central bank to be at the forefront or lead in stimulating economic growth, but to focus on jointly solving structural problems causing economic stagnation."

ไม่ใช่หน้าที่ของธนาคารกลางที่จะเป็นแนวหน้าหรือผู้นำในการกระตุ้นเศรษฐกิจให้เติบโต แต่จะมุ่งเน้นที่การเข้าไปร่วมแก้ไขปัญหาเชิงโครงสร้างที่เป็นสาเหตุให้เศรษฐกิจซึมตัว

Withai Ratanakorn

"Interest rates that are too low are not a good thing in the long run because they affect depositors, especially the elderly and small depositors."

ดอกเบี้ยที่ต่ำเกินไปไม่ใช่เรื่องดีในระยะยาว เพราะส่งผลกระทบต่อผู้ฝากเงิน โดยเฉพาะผู้สูงอายุและผู้ฝากเงินรายย่อย

Key Entities

Person

Withai Ratanakorn(วิทัย รัตนากร)

Governor of the Bank of Thailand.

Organization

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The central bank of Thailand responsible for economic stability.