BANGKOK, April 24 (Xinhua) -- Thailand's current policy interest rate settings remained robust and could handle potential economic risks, the central bank said on Wednesday, amid repeated calls from the government to lower borrowing costs to shore up sluggish growth.

According to the Bank of Thailand (BOT), maintaining the key interest rate at 2.50 percent provides the monetary panel with "policy optionality" to tackle currency volatility stemming from global factors and geopolitical uncertainties.

Lowering the policy rate could mitigate debt burdens in the short term but it would encourage additional borrowing, leading to higher debt outstanding, which could pose macro-financial stability risks and hinder long-term economic growth, the BOT said in a statement.

The BOT held its key interest rate unchanged for a third consecutive meeting at a decade-high of 2.5 percent earlier this month, despite Thai Prime Minister Srettha Thavisin's repeated calls to ease monetary policy to boost the economy and alleviate the burden on the people.

As structural headwinds and external factors continue to weigh on recovery in the Thai economy, inflation remains subdued by supply-side factors and is projected to gradually pick up towards the target range by the end of 2024, the BOT said. Enditem

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