Deputy Prime Minister and Finance Minister Pich Chunha addressed the MPC’s decision to reduce the policy interest rate by 0.25%, marking the first cut in four years. He noted the rate cut aligns with government expectations but may not significantly impact new loans. Concerns about personal and SME debt persist, and ongoing discussions aim to boost market liquidity. Future decisions will consider domestic rates and global economic trends.
Finance Minister Addresses Reduction in Policy Interest Rate
In a recent announcement, the Finance Minister addressed the ongoing discussions surrounding the policy interest rate cut. Emphasizing the necessity of such a move, the minister highlighted its potential to stimulate economic growth and enhance consumer spending. By lowering interest rates, the government aims to make borrowing more affordable, thereby encouraging investments across various sectors.
The Finance Minister also noted that the decision to cut rates is a strategic response to current economic challenges, including inflationary pressures and sluggish growth. This adjustment is expected to support small and medium-sized enterprises, which are vital for job creation and economic stability. The minister reassured the public that the government remains committed to maintaining a balance between growth and inflation control.
Furthermore, the minister encouraged citizens and businesses to take advantage of the favorable borrowing conditions created by the rate cut. By fostering a conducive environment for investment, the Finance Minister believes that the economy can rebound more robustly. This proactive approach underscores the government’s dedication to supporting the country’s economic landscape during uncertain times.
