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BoT sees moderate expansion for Thai economy

BoT sees moderate expansion for Thai economy

The Thai economy will continue to expand moderately this year although it has been affected by the global economic crisis, according to a senior official at the Bank of Thailand.
Speaking at a seminar on “The BoT’s Role in Turning Around the Thai Economy,” Songtham Pinto, senior official in charge of the Monetary Policy Group’s Macro-economy Division, said the Thai economic malaise was attributed to the global economic recession, particularly in the United States and Europe.
Now, it has escalated and spilled over to Asia and had an impact on Thailand, particularly its exports.
He said what the government and all parties concerned should do to cope with the economic downturn is to restore consumers’ confidence and encourage the public to spend and invest more.
Simultaneously, various fiscal measures must be taken to stimulate the economy at the grass roots level.
He said the Monetary Policy Committee’s move the cut the policy interest rate sharply to 2 percent would help ease borrowing costs, encouraging investors to invest more.
Songtham said the central bank maintains its economic growth estimate for this year at 0.5-2.5 percent, but it will revise its projection on January 23.
Songtham believes the Thai economy will not shrink this year despite the seriousness of the global economic crisis, but will continue to expand moderately while inflation rates will remain low. (TNA)