BANGKOK, Dec 9 (TNA) – Acting Finance Minister Suchart Thada-Thamrongvech on Monday conceded he was concerned the country's economic woes will intensify early next year.
"The economy has begun to signal its worsening because policies drawn up to address the problem cannot function properly and state agencies need to wait for a new policy from the next government," he said.
In particular, the mid-year budget of Bt100 billion must be suspended pending consideration and approval by the next government.
Mr. Suchart said he was happy to see the Bank of Thailand (BoT) Monetary Policy Committee reduce the policy interest rate sharply because it would encourage financial institutions to shift their deposits to other channels with more attractive returns.
It would help boost the liquidity in the system, he said, adding, however, that it also depends on how much financial institutions would lend.
Although the policy interest rate was cut sharply, he viewed, a further reduction in the interest rate could be made. (TNA)
Business News : Last Update : 08:54:59 9 December 2008 (GMT+7:00)
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