Recently, Thailand’s leaders have offered differing views on the country’s economic policy, sparking discussions about proposals to lower interest rates and implement ‘Digital Money’ that could potentially affect currency value and inflation.

The Prime Minister of Thailand has proposed lowering interest rates to combat pressure from international markets, particularly in the context of the depreciation of the Thai Baht against the US Dollar. Although he hopes this action can help, the Governor of the Bank of Thailand opposes this view, causing a dispute among economic leaders.

Another issue causing disagreement is the proposal to provide ‘Digital Money’ for free to all Thai citizens aged 18 and above. The Prime Minister insists on this concept, however, the Governor of the Bank of Thailand questions the potential inflationary effects and suggests giving money only to specific target groups.

In the context of interest rates, the Central Bank of Thailand is reluctant to lower interest rates even though deflation is already haunting the economy. This is due to concerns about potential pressure on the value of the Thai currency, especially with the interest rate difference between that country and the United States.

High-interest rates in the United States provide an incentive for investors to withdraw capital from Thailand, affecting the country’s currency value and economy. The difference in the ‘policy rate’ between the Bank of Thailand and the Federal Reserve is a determining factor in this decision.

In an atmosphere of global economic uncertainty, tensions among Thailand’s leaders reflect the challenges in balancing political desires and economic impacts. Decisions regarding interest rates and the introduction of ‘Digital Money’ will continue to be a topic of discussion in efforts to maintain stability and economic growth in Thailand.