BANGKOK, Jan. 8 (CNA) – Thai Prime Minister Srettha Thavisin said the central bank's rate increases have not been good at all for the economy, urging it to avoid moves that will adversely impact low-income families and small businesses.

The government of Srettha, a real estate tycoon who took office in August, is seeking to spur growth in Southeast Asia's second-biggest economy through stimulus and consumer spending, with Thailand trailing regional peers with growth forecast at about 2.4 per cent last year, short of the 2022 figure.

"The Bank of Thailand has raised interest rates despite negative inflation for many consecutive months, which is not good for the economy at all and also has an impact on people with low incomes and SMEs," he said on X social media late on Sunday (Jan 7).

The central bank left its policy rate unchanged at 2.5 per cent in November after raising it by 200 basis points since August last year to curb inflation. It will next review policy on Feb 7.

Headline inflation came in at -0.83 per cent in December, making it the eighth straight month that it was outside the central bank's target of 1 per cent to 3 per cent.

Srettha said he hoped the central bank would "help take care of the people by not raising rates in the opposite direction of inflation.

Photo from CNA