"The economy is resilient and is able to withstand multiple shocks," Sethaput told TV channel JKN-CNBC. The economy grew 2.6% last year. The BOT last month raised interest rates a quarter a percentage point to 1.75% The BOT has raised its key rate by a total of 125 basis points since August, less aggressive than many of its regional peers. "Policy normalisation will continue, but we will be cautious and monitor the situation," Sethaput said. The central bank has the tools to support the financial system in the event of any problems, he said. When asked about policies being proposed by political parties ahead of elections in May, he said economic stimulus was not necessary at the moment.
"Fiscal and monetary policy needs to be normalized and
prioritize stability ... markets are ready to punish policies
that don't make sense, that upset stability," he said.
Thailand will hold elections next month, with many parties
promising handouts and giveaways, from cash transfers to raising
the minimum wage.
(Reporting by Chayut Setboonsarng and Satawasin
Staporncharnchai
Editing by Ed Davies)
