ID :
151767
Tue, 11/30/2010 - 09:45
Auther :
Shortlink :
http://m.oananews.org//node/151767
The shortlink copeid
Court dismissal of Democrat case benefits economy: BoT
BANGKOK, Nov 30 – The Constitutional Court’s dismissal of the dissolution case against Thailand's ruling Democrat Party over the alleged misuse of political campaign funds is considered a positive factor for the country’s economy, according to Bank of Thailand (BoT) Governor Prasarn Trairatvorakul.
It could be seen in the surge in the Stock Exchange of Thailand (SET) composite index in Monday afternoon's trading session after the verdict was given, he said.
The decision showed that the political and economic policies adopted by the present government would be able to continue for the time being, news which was welcomed by the business community generally.
The BoT governor said the market is prepared for a House dissolution next, but should there be a snap election, it might cause uncertainties which could negatively affect the economy.
Mr Prasarn believed the gross domestic product (GDP) this year would not be affected by Thailand's political difficulties, but is expected to grow 7.3-8 per cent this year and 3-5 per cent next year.
However, he conceded the Thai economy would nonetheless face negative factors, particularly currency exchange risks, that must be closely monitored next year.
Although the US dollar had begun appreciating slightly, he said, it would last only for the short run.
The BoT chief said the battered US economy needed rehabilitation in the medium term. The state of the US economy has resulted in foreign capital continuing its inflow into Asia.
Thailand's central bank now has an effective tool to ensure the stability of the baht, he said, but whether and when more measures may be taken depends on the particular situation. (MCOT online news)
It could be seen in the surge in the Stock Exchange of Thailand (SET) composite index in Monday afternoon's trading session after the verdict was given, he said.
The decision showed that the political and economic policies adopted by the present government would be able to continue for the time being, news which was welcomed by the business community generally.
The BoT governor said the market is prepared for a House dissolution next, but should there be a snap election, it might cause uncertainties which could negatively affect the economy.
Mr Prasarn believed the gross domestic product (GDP) this year would not be affected by Thailand's political difficulties, but is expected to grow 7.3-8 per cent this year and 3-5 per cent next year.
However, he conceded the Thai economy would nonetheless face negative factors, particularly currency exchange risks, that must be closely monitored next year.
Although the US dollar had begun appreciating slightly, he said, it would last only for the short run.
The BoT chief said the battered US economy needed rehabilitation in the medium term. The state of the US economy has resulted in foreign capital continuing its inflow into Asia.
Thailand's central bank now has an effective tool to ensure the stability of the baht, he said, but whether and when more measures may be taken depends on the particular situation. (MCOT online news)
