ID :
13807
Fri, 07/25/2008 - 20:03
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http://m.oananews.org//node/13807
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Thai economy not in crisis now, says BoT
BANGKOK, July 25 (TNA) – The Thai economy in the first half of 2008 is not in crisis as it was in 1997 although it had experienced difficulties from surging oil prices, global economic slowdown, and political uncertainties, according to the Bank of Thailand (BoT).
Speaking at a seminar on "Views on Ways to Solve Thai Economic Woes," held by the Federation of Thai Industries, BoT deputy governor Atchana Waiquamdee said the country's economy managed to grow 6 per cent in the first half of the year amid the fuel price surge, world economicsluggishness and political turmoil.
But the bank expected the economy in the second half of the year wouldexpand slightly less than that in the first half.
"Many view the economy as being in crisis now because they feel prices of oil and consumer products have risen so sharply that they do not have money left to buy other products.
"Also, they are unsure whether the government will be able to steer the country ahead amid the economic and political storm. So, they feel bad about the economy," she said.
Asked whether the bank would raise the policy interest rate further following the rate hike by 25 basis points at the last meeting of the Monetary Policy Committee, she said the bank served like a doctor who prescribed a first set of medications for patients suffering from theinflation surge by increasing the interest rate.
However, the treatment must have side effects. That meant the economycould grow at a slower pace. Whether a new regimen of medications would be prescribed depended on the health conditions of patients, which need to be monitored.
"Normally, no doctors want to prescribe strong medicines to patients.
Additionally, they have to consider the possible side effects. In economic theory, should we take serious action to cope with an ailing economy with major inflation, it may lead to stagnation." She conceded the global interest rate is now in an upward trend. Butshould the economy be adversely affected until it is so weak, it is likely the bank would maintain the interest rate at 3.50 per cent.
Speaking at a seminar on "Views on Ways to Solve Thai Economic Woes," held by the Federation of Thai Industries, BoT deputy governor Atchana Waiquamdee said the country's economy managed to grow 6 per cent in the first half of the year amid the fuel price surge, world economicsluggishness and political turmoil.
But the bank expected the economy in the second half of the year wouldexpand slightly less than that in the first half.
"Many view the economy as being in crisis now because they feel prices of oil and consumer products have risen so sharply that they do not have money left to buy other products.
"Also, they are unsure whether the government will be able to steer the country ahead amid the economic and political storm. So, they feel bad about the economy," she said.
Asked whether the bank would raise the policy interest rate further following the rate hike by 25 basis points at the last meeting of the Monetary Policy Committee, she said the bank served like a doctor who prescribed a first set of medications for patients suffering from theinflation surge by increasing the interest rate.
However, the treatment must have side effects. That meant the economycould grow at a slower pace. Whether a new regimen of medications would be prescribed depended on the health conditions of patients, which need to be monitored.
"Normally, no doctors want to prescribe strong medicines to patients.
Additionally, they have to consider the possible side effects. In economic theory, should we take serious action to cope with an ailing economy with major inflation, it may lead to stagnation." She conceded the global interest rate is now in an upward trend. Butshould the economy be adversely affected until it is so weak, it is likely the bank would maintain the interest rate at 3.50 per cent.
