Measures mulled to control debt
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Bank of Thailand threatens to impose measures to rein in growth in household debt, if necessary.
Paiboon Kittisrikangwan, assistant governor of the Bank of Thailand (BOT), said on Friday that the Monetary Policy Committee expressed grave concern about huge excess liquidity which spurs domestic spending and investment in risk assets. Household debts have also been on an upward trend.
"If loan growth and household debt continue rising at this rate, that would be more worrisome. Though overall loan growth has slowed to 14 per cent from 15 per cent, the MPC will closely monitor the condition and is ready to impose measures, if necessary," he said.
He insisted that the central bank has a full range of policy options, which can rein in the foreign exchange market as well as tighten controls on financial institutions.
"It depends on the root of the problems. Each requires a different solution. The measures should not create side-effects," he said.
