Thirachai urges MPC's thorough review on rate setting

The MPC will meet on Oct 19 to review the policy rate. Thirachai said that MPC's decision may shatter the economy too early( by raising the policy rate several times). "The MPC should not only look at past ststistics but should also look at political development in EU and the US that will affect the economy" he said. Thirachai and Deputy Prime Minister Kittiratt Na-Ranong were adamant that interest rates should be kept low to boost the economy. Yet, to the MPC, the government's populist policies are a factor to fuel inflation. Meanwhile, Thirachai said today that the government will start allocating the Bt80-billion village fund scheme-cash handouts. The government will also distribute funds to villages under the SML scheme, aimed for the repairs of floods-damaged properties.