(Recasts with PM meeting central bank governor)
BANGKOK, Oct 2 (Reuters) - Thailand's Prime Minister Srettha Thavisin was due to meet the central bank governor on Monday, less than a week after an unexpected hike in interest rates seemed to clash with government efforts to stimulate the economy.
Srettha reiterated plans on Monday to inject 560 billion baht ($15.23 billion) into the economy next year through his signature digital wallet policy, the key plank of his Pheu Thai Party's electoral platform.
The real estate mogul, who is also finance minister, has already rolled out a raft of policies including cutting electricity prices and waiving visa for Chinese tourists to boost short-term economic growth.
However, the central bank last week raised key rates to 2.50%, the highest in 10 years while slashing its 2023 growth outlook 2.8% from 3.6% and upping its 2024 forecast to 4.4% from 3.8%, anticipating upside inflation risks from new government policies. Growth was a sluggish 2.6% last year.
Srettha said he would discuss "everything" with Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput. The governor on Friday said he did not know what would be on the agenda.
Sethaput last month said there was little need to boost consumption. On Friday, following the rate hike, he said that a pause was suitable "for now".
All 20 economists in a Sept. 27-29 Reuters poll expected the BOT to hold rates at its next review on Nov. 29.
"Raising rates could slow down the economy because it delays investment," said Siam Commercial Bank economist, Poonyawat Sreesing.
But as inflation comes into the 1% to 3% range, rates are expected to hold, even if the economy grows at 5%, Poonyawat added.
The different approaches of the government and BOT are not at odds with each other, some analysts say.
"The central bank wants to ensure a stable recovery while the government wants the economy to return to normal ... both want to see growth," said Krung Thai Bank economist, Phacharaphot Nuntramas, adding the government's approach poses some fiscal risks that have to be managed.
In livestreamed remarks on Monday, Srettha reiterated the government would further reduce electricity prices and triple farmer incomes within four years, while pursuing new free trade pacts aimed at turning Thailand into a major destination for foreign investors.
($1 = 36.7700 baht) (Reporting by Chayut Setboonsarng, Panarat Thepgumpanat and Satawasin Staporncharnchai; Editing by Martin Petty and Shri Navaratnam)
