ID :
9444
Thu, 06/05/2008 - 19:26
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Shortlink :
https://oananews.org//node/9444
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FINANCE MINISTER HINTS AT ADOPTING FISCAL POLICY
Bangkok, June 5 (TNA) – Thailand's Finance and Deputy Prime Minister Surapong Suebwonglee on Thursday hinted at adopting a fiscal policy to cope with rising inflation, saying that the country's current monetary policy is insufficient to contain it.
Speaking of mounting concerns over rising inflation rates due to oil and cost of living increases, he said many parties remained divided over the proposed interest rate hike to ease inflationary pressure.
He conceded that the monetary policy which has been adopted to contain inflation at present might not be effective.
So, it is necessary to give importance to adopting a fiscal policy to address Thailand's current inflation challenge.
However, the movement of short-term policy interest rates depended on the discretion of the Bank of Thailand's Monetary Policy Committee, he said.
The Commerce Ministry announced earlier this week that the overall inflation rate in May surged to 7.6 per cent in the wake of the continued rise in oil and agricultural product prices.
The announcement caused many to worry the inflation rate this year might surge to a double-digit level if both fuel and agricultural product prices continue to rise.
Speaking of mounting concerns over rising inflation rates due to oil and cost of living increases, he said many parties remained divided over the proposed interest rate hike to ease inflationary pressure.
He conceded that the monetary policy which has been adopted to contain inflation at present might not be effective.
So, it is necessary to give importance to adopting a fiscal policy to address Thailand's current inflation challenge.
However, the movement of short-term policy interest rates depended on the discretion of the Bank of Thailand's Monetary Policy Committee, he said.
The Commerce Ministry announced earlier this week that the overall inflation rate in May surged to 7.6 per cent in the wake of the continued rise in oil and agricultural product prices.
The announcement caused many to worry the inflation rate this year might surge to a double-digit level if both fuel and agricultural product prices continue to rise.
