IMF: Thailand needs to implement fiscal support and lower interest rates to support the economy.

The International Monetary Fund (IMF) stated that Thailand needs to adopt a targeted combination of policies to support its slowing economy, and urged Thailand to implement targeted fiscal support while further loosening monetary policy. The IMF pointed out in its latest Article IV consultation report that although monetary policy adjustments should still be data-dependent, after several rate cuts, real interest rates remain high, leaving room for further easing. The report stated that while fiscal and monetary policies can play a role to some extent, structural reforms are still needed to reverse the sluggish growth trend. The Bank of Thailand said in a statement that Thai authorities fundamentally agree with the IMF's assessment and reiterated their commitment to prudent macroeconomic management to support economic recovery.