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Thailand’s central bank will use policy mix to tackle uneven economic recovery, governor says By Reuters
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Thailand’s central bank will use policy mix to tackle uneven economic recovery, governor says By Reuters

BANGKOK (Reuters) – Thailand’s central bank will use a mix of policies to tackle the uneven recovery of Southeast Asia’s second-largest economy, its governor said on Saturday.

According to Sethaput Suthiwartnarueput, governor of the Thai central bank, interest rates alone are not a solution to the economic problems, he said at a press conference.

“We are prepared to make adjustments that are appropriate to the situation,” he said. “If the outlook changes, we are prepared to adjust policy rates.”

The BOT left its key interest rate unchanged for the fifth time in a row on Wednesday. The bank said the current level was neutral as it waited to see whether the country’s new prime minister would adopt an economic stimulus policy.

© Reuters. ARCHIVE PHOTO: The central bank of Thailand is seen at the Bank of Thailand in Bangkok, Thailand, April 26, 2016. REUTERS/Jorge Silva/File photo

Prime Minister Paetongtarn Shinawatra was sworn in last week after her predecessor Srettha Thavisin was dismissed by court order. Paetongtarn has said she would continue the government’s flagship 500 billion baht ($15 billion) digital wallet cash-distribution program but would overhaul it.

Thailand’s economy grew 2.3 percent in the April-June quarter from a year earlier, an acceleration from 1.6 percent growth in the previous three months. However, analysts said uncertainty over fiscal policy clouded the outlook.