BoT, Finance Ministry will cooperate more closely on macro-economy

ID :
15323
Fri, 08/08/2008 - 12:22

BoT, Finance Ministry will cooperate more closely on macro-economy

BANGKOK, Aug 8 (TNA) – Bank of Thailand (BoT) Deputy Governor Atchana
Waiquamdee Thursday agreed with newly-appointed Deputy Finance Minister Suchart Thadathamrongvej that economic stimulus planning and
macro-economic policy making will benefit from closer cooperation between the bank and the ministry of finance.

However, she affirmed also that the bank must be free to implement its
monetary policy independent of political pressures and rely upon its
policy tools, both of which is in line with international standards.

She sees external factors -- including rising oil prices and the global
economic slowdown -- as placing considerable pressure on the Thai economy.

So, none of the parties should create economic and political
confidence-related problems to worsen the economic situation.

Mrs. Atchana said all players could have different opinions on the
direction of interest rates, but she asserted that the Monetary Policy
Committee's latest decision to raise the policy interest rate was made
carefully to ensure that economic growth is not affected.

Meanwhile, the minister said that many foreign investors had shifted their
investment to other countries in response to the ongoing political
conflicts in Thailand.

Consequently, it is vital to speed up the restoration of confidence in the
country.

Regarding ways to curb inflation, he reiterated his view that the
implementation of strict monetary policy
through an interest hike might not be an appropriate solution.

It is a problem which the ministry of finance and the central bank must
cooperate closely to cope with it, he said. (TNA)
X