December 30, 2008
Bangkok (Manager Online) - The Bank of Thailand (BoT) pinned its hope on the government to use the fiscal policy to solve the country’s economic problem.
The central bank was earlier worried that Thailand’s economy might be delayed in the long run if the government could not present its policy to parliament.
BoT’s Ajana Waikwamdee admitted it would be difficult to rely on monetary policy to deal with current economic problem as the interest rate dropped to near 0%.
Ajana added that the DAAD protests affected the announcement of the government’s measures to boost economy.
She believed political instability would certainly result in delayed budget allocation which led to decreasing people’s confidence and private sector’s investment.
The government was urged to bring fiscal policy into use to boost commercial banks’ confidence.
It was also suggested that the government should cancel the oil excise tax subsidy in a bid to support the prices of agricultural products such as palm and sugar cane.
