Porked & busted: Thai woman nabbed for telling ‘pork’ pies 208 times

[webfact]

ECONOMY

Monetary policies to remain relaxed, amid risks

The Nation

BANGKOK: -- Bank of Thailand Governor Prasarn Trairatvorakul highlighted Global economic uncertainties, the United States' fiscal cliff, public debt crisis in the euro zone as well as political change in Japan as risk factors to the Thai economy next year.

The central bank forecasts 4.6-4.7 per cent growth rate for 2013.

At "BOT meet the press" over the weekend, Prasarn foresees further relaxation in monetary policies.

"The Monetary Policy Committee is of the view that the global economy would continue expanding, but with some risks which pose more pressure than inflation. The monetary policies will thus remain relaxed. The current policy rate at 2.75 per cent is lower than inflation, which is to accommodate economic expansion," he said.

For economic stability, the Bank of Thailand is now in discussion with the Finance Ministry over measures to curb household debt, particularly among people earning less than Bt10,000 a month. There is no conclusion yet whether Thailand needs a new regulatory body.

Prasarn admitted that the government’s policies on minimum wage hike, first-car buyer scheme and first-home buyer scheme partially drove up household debt. He noted that it is essential that all should learn to save more for long-term financial stability.

Suchada Kirakul, advisor to the Bank of Thailand’s governor, said that capital inflows to Asia as well as Thailand tend to increase further, but this should not largely affect the Thai baht. The government’s investment in mega projects should also offset the impact of inflows, as some materials have to be imported.

She envisioned the possible reduction in current account surplus or even a current account deficit, due to the public and private sector investment. This would also be assisted by the Bank of Thailand’s new measures to promote overseas investment by Thai companies. Meanwhile, Thailand should register only a single-digit export growth next year.

"A number of investment projects have been planned for next year, particularly by the public sector. In the first quarter, the bill to endorse the government’s Bt2.27 trillion borrowing would be drafted. Meanwhile, the government would need to borrow under the Bt350 billion borrowing decree, which would be expired in June," she said.

-- The Nation 2012-12-17