The Ministry of Finance discussed with the Bank of Thailand to join hands to clear debt, add new funds, support investment, push the economy to grow by 3% in 2025, push inflation to 2%.
Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, discussed with Mr. Sethaput Suthiwatanaruput, Governor of the Bank of Thailand (BOT) to jointly push for an average inflation rate of 2 percent from the current inflation range of 1-3 percent because the inflation range does not need to be adjusted every year. Since the inflation range is considered a downstream factor, the Ministry of Finance and the BOT must discuss and reach a conclusion within the next 2 weeks. The meeting agreed to make monetary and fiscal policies consistent, including:
Coordinating monetary and fiscal policies will drive the economy to grow by 2.7 percent in 2024 and expand by 3 percent in 2025. When the BOT understands the government’s intention, it must take care of the baht’s movement appropriately, in line with the currencies
of neighboring countries and trade competitors.
2. Jointly promoting investment, taking care of low-income earners, people lacking purchasing power, debt restructuring, solving household debt problems, housing debt problems, car debt problems, so that people will have the power to apply for new loans to start a career. Therefore, promoting investment will pass on the idea to the MPC, which must consider reducing interest rates to create liquidity in the market. After that, the inflation rate will start to rise to reach an average of 2 percent from the inflation range of 1-3 percent.
3. The Ministry of Finance also proposed that the BOT focus on managing the baht to move in line with neighboring countries and trade competitors because Thailand still relies on exports, combined with interest rate policies to help the economy recover. Both the currency and interest rates will help drive the economy to recover.
The government must push forward investment, economic restructuring, promote investment through the
BOI, promote investment in green energy, environmental care industries, upgrade labor skills, support investment in semiconductors, which is national policy, invest in modern agriculture, bio-biology, accelerate the development of important infrastructure, including land bridges, logistics systems, and link trade with China.
The Treasury and the Bank of Thailand will meet several more times if they push for GDP growth within the range of 3.2-3.5 percent, average inflation of 1.5 percent, and the country’s GDP worth 20 trillion baht, there will be room to create public debt, borrowing 770 billion baht to manage the country, within the framework of fiscal discipline, with public debt of 75 percent of GDP. When the BOT can summarize its proposals in another 2 weeks, it will be presented to the Cabinet meeting for consideration in December. -515- Thai News Agency
Source: Thai News Agency
