Thailand's central bank will act independently and not cave to 'political' pressure, governor says

Political pressure won't force the hand of Thailand's central bank in making its interest rate decisions independently, the country's central bank chief told CNBC on Monday.

"The proof is in the pudding," Bank of Thailand Governor Sethaput Suthiwartnarueput told CNBC's "Street Signs Asia."

Despite the "clamoring" for rate cuts, the BOT didn't act on it "if we weren't operating independently," he added.

"I think that the governance framework for that is quite clear ... the decisions that have been made indicate that they are taken on the basis of [what] we feel is the most appropriate for the economy, rather than considerations about trying to ease political or other pressures."

The BOT kept the key interest rate steady at 2.50% in its latest policy meeting in April. But the central bank has been facing intense pressure from the government to lower rates, including from the country's Prime Minister Srettha Thavisin, Reuters reported.

Lower borrowing costs tend to stimulate economic growth as it encourages businesses to invest and consumers to spend.

In the minutes for the April meeting, the monetary policy committee "expressed concern over elevated household debt and recognized the importance of debt deleveraging."

"The high level of debt outstanding could hinder long term economic growth, especially if debt does not contribute to future income or wealth accumulation," it said.

Sethaput acknowledged that it has been a "tough balancing act" for the central bank as it tries to manage weak economic recovery and monetary policy.

"If you look at the reasons that have caused the growth to be sluggish, it doesn't have so much to do with things that are sensitive to interest rates," he said.

The BOT chief said the current rate was