Latest news with #Sethaput
The Star
11-05-2025
- Business
- The Star
Thai central bank chief says uncertainty very high and limited policy space ahead over US tariffs impact
BANGKOK (Reuters): Thailand has limited fiscal and monetary policy room ahead of what could be a prolonged impact from steep US tariffs, but the economy is not in crisis despite facing a very high degree of uncertainty, its central bank chief has announced. Thailand is among the South-East Asian nations hardest hit by US President Donald Trump's trade measures and is facing a 36% tariff if a reduction cannot be negotiated before a global moratorium expires in July. Bank of Thailand Governor Sethaput Suthiwartnarueput said monetary policy was not fixed and the central bank was ready to adjust rates if the outlook changes, but room for that was limited. The BOT in April delivered a second consecutive cut to interest rates to 1.75%, the lowest level in two years, to support a lacklustre economy under pressure from U.S. tariffs. The finance ministry last week cut its forecast for growth in the exports- and tourism-reliant economy this year to 2.1% from 3% due to the impact of U.S. tariffs and a global slowdown. "The storm is coming. The real impact has not yet seen but will be felt in the fourth quarter," Sethaput told a press conference. "The impact will last long and will not end quickly." The economy is expected to hit the lowest point after the fourth quarter and "recovery will take a long time to return to normal", he said. FLOOD OF IMPORTS The United States was Thailand's largest export market last year, accounting for 18.3% of total shipments, or $54.96 billion. Washington has put its trade deficit with Thailand at $45.6 billion. The tariffs would immediately hit the manufacturing sector hard, but not as bad as during the pandemic, Sethaput said. Support measures would need to be targeted and Thailand's protracted talks on free trade agreements should be expedited, he added. A major concern for Thailand, he said, was a "flood" of imports from diverted trade that could impact a wider range of sectors such as textiles. The government is seeking to speed up the rollout of the rest of its vaunted $14 billion stimulus programme to support the economy, but Sethaput warned such a move could backfire. "With more imports, if we boost consumption, wouldn't that just help other countries?" he said. The recent movements of the baht were in line with market forces and the central bank would manage volatility, he said. Sethaput's term ends in September and he cannot seek another having reached retirement age. A selection committee will shortlist candidates to replace him by July 2. Sethaput on Friday said he hopes his successor to focus on long-term restructuring of the economy. (Reporting by Orathai Sriring, Kitiphong Thaichareon and Chayut Setboonsarng; Editing by Martin Petty) - Reuters
Bloomberg
09-05-2025
- Business
- Bloomberg
Thai Central Bank Sees Limited Policy Room After Three Rate Cuts
Thailand's central bank has limited 'ammunition' after recent interest rate cuts, according to Governor Sethaput Suthiwartnarueput, who called for more targeted measures to shield Southeast Asia's second-largest economy from the impact of US tariff. The Bank of Thailand is exploring additional measures, the timing of which will depend on the severity of the hit from US tariff on Thai exports, Sethaput told a briefing on Friday. The steps won't be broad-based but focused on sectors in need of help, he said.
Reuters
09-05-2025
- Business
- Reuters
Very high degree of uncertainty in Thailand over US tariffs, central bank chief says
BANGKOK, May 9 (Reuters) - The impact on Thailand from the United States' tariff policy creates a very high decree of uncertainty, the central chief bank said on Friday. The impact will be more clear in the second half of the year, Bank of Thailand Governor Sethaput Suthiwartnarueput told a press briefing.
Yahoo
09-05-2025
- Business
- Yahoo
Very high degree of uncertainty in Thailand over US tariffs, central bank chief says
BANGKOK (Reuters) -The impact on Thailand from the United States' tariff policy creates a very high decree of uncertainty, the central chief bank said on Friday. The impact will be more clear in the second half of the year, Bank of Thailand Governor Sethaput Suthiwartnarueput told a press briefing. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
08-05-2025
- Business
- Reuters
Thailand to shortlist central bank chief candidates by July 2, official says
BANGKOK, May 8 (Reuters) - A Thai selection committee plans to shortlist candidates to be the next central bank chief by July 2, an official said on Thursday, ahead of the end of incumbent Governor Sethaput Suthiwartnarueput 's five-year term in September. The new Bank of Thailand governor will face a tough task of steering the country's underperforming economy, the second largest in Southeast Asia, through the global trade war. Thai law requires the committee to pick at least two candidates for the finance minister to choose from at least 90 days before the end of the incumbent governor's term. The appointment will also require cabinet and royal approval. Applications for the role will be open from May 13 to June 4, Pornchai Thiraveja, head of the finance ministry's fiscal policy office, told a news briefing. The committee will hold its next meeting on June 20. Potential candidates include deputy Roong Mallikamas, a deputy central bank governor, and Sutapa Amornvivat, a former economist at the International Monetary Fund, according to local media. Governor Sethaput's term ends on September 30. The 60-year-old former World Bank economist cannot seek a second term as he has reached retirement age. Sethaput has disagreed with some policies of the ruling Pheu Thai party, which took office in 2023, and had long resisted its calls for cuts in interest rates. He has also stressed the need for central banks worldwide to be independent in his speeches. The search for a new governor follows a drawn-out process to select a new Bank of Thailand board chair. The nomination of a government loyalist drew widespread criticism from economists and former central bank governors, and an advisory council said the candidate was ineligible because of a recent political role. When the process restarted, a government-backed candidate, former finance ministry permanent secretary, Somchai Sujjapongse, was appointed to the position in April.
