The Bank of Thailand (BOT) has room to turn more accommodative and could jump on the easing bandwagon if economic activity doesn’t pan out as expected, said Governor Prasarn Trairatvorakul.
“Suppose as time goes by…consumption, tourism, government spending do not turn out as expected. Then we need to ask if we have the policy space to be more accommodative,” Trairatvorakul told CNBC.
“The answer is yes,” he said, adding that subdued inflation has opened up room for policy easing. Like many Asian economies, Thailand faces easing inflation driven by the collapse in oil prices.