BOT assures of sufficient liquidity in Thai economy

BANGKOK, September 19 (TNA) - The Bank of Thailand (BOT) has confirmed that there is sufficient liquidity in the local financial sector to support the government’s 2.2-trillion-baht mega-investment projects over the next seven years although the amount is close to the administration's annual budget deficit. BOT Governor Prasarn Trairatvorakul made the confirmation, himself, on Thursday, acknowledging that there is excessive liquidity in the Thai economy for the development of national infrastructure, mostly transportation plans. Prasarn pointed out although the government's new investment requires massive funding, it will produce positive economic results and stability eventually. Representing the private sector, Aungsurus Areekul, President of the Thai Contractors Association, also expressed his support for the government's 2.2-trillion-baht infrastructure development, as it will strengthen the national economy, citing a similar and successful move by neighbouring Malaysia after the 1997 regional economic crisis. Aungsurus said if the Thai government, for instance, invests 300 billion baht annually in national transport development, the private sector will invest in related businesses, leading to several parties' enjoying booming businesses with more jobs created in the Thai economy. Meanwhile, the BOT chief expressed no concerns over a possibly quick baht appreciation after the US Federal Reserve has now decided to maintain its quantitative easing (QE) measure, ensuring the public that the BOT would take actions if there was any impact from Washington's easing QE measure. According to the BOT governor, the central bank's Monetary Policy Committee (MPC) will review Thailand's economic outlook on October 16 and will announce its forecast on the Thai economic growth rate on October 25. (TNA)