Flare-up in US-China trade tensions poses a big risk to Thailand's growth - deputy central bank governor

Economic Outlook - The trade tensions between the United States and China pose a significant risk to Thailand's economic growth, with the central bank's deputy governor indicating limited room for further rate cuts [1][2] - The Bank of Thailand expects growth rates of 2.2% for the current year and 1.8% in 2026, which are below the potential growth rate of 2.7% [3] Monetary Policy - Despite sluggish economic growth, the central bank decided to maintain the key interest rate at 1.5%, which is historically low, rather than implementing cuts [4] - The deputy governor noted that lending rates have only dipped below 1.5% three times in history, during significant crises [4] Economic Constraints - The central bank is focusing on financial measures, such as debt restructuring and loan guarantee schemes, rather than solely relying on funding conditions to stimulate the economy [5] - Recent negative inflation data for six consecutive months does not necessitate a change in the central bank's inflation target of 1-3%, as declines are attributed to external factors [6]