BOT issues statement to retain public confidence
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Bank of Thailand on Friday issued a statement clarifying its role, amid a series of reports on its operations.
"The reports on the roles could confuse the public and affect confidence in the country's central bank," it said in the statement.
BOT has been criticised by some politicians for failing to take care of the exchange rates. The BOT has been under huge pressure to cut the policy rate, believed to be a key mechanism to slow down baht appreciation.
In the statement, the central bank said that all national economic pillars, be they the BOT or the Finance Ministry or others share the same goal - the quality of life for all which could be achieved under sustainable economic development without any hiccup from financial crises as well as equal income distribution. This requires the streamlining of fiscal and monetary policies, in accordance with the country's economic fundamentals.
"In determining policy issues, it is normal that the central bank governor and the finance minister will show differing views, particularly on the bias towards short and long-term goals. This requires discussion and takes into account the overall picture, to determine how to implement the policies for the sake of the country. As all parties hold good wishes to the country, thorough joint consideration with the country's sake as the top priority, should lead to a decision suitable for the situation," the BOT said in the statement.
The statement went on with the four key responsibilities. It also explained on the huge accounting loss and the policy rate. At the end, it assured the public that the 70-year-old institution will follow through international standards of central banking.
Deputy Finance Minister and Finance Minister Kittiratt Na-Ranong proposes a meeting with the 7 members of the Bank of Thailand's Monetary Policy Committee on Monday. BOT governor Prasarn Trairatvorakul chairs the MPC.
Somprawin Manprasert, the dean of Chulalongkorn University's Faculty of Economics, said that the meeting is a good sign, to send a signal to all that the government is serious in tackling the problem and speculators should beware.
Yet, he said that the meeting may not lead to a cut in the policy rate. To him, the MPC should take this opportunity to explain its standpoint, which upholds economic stability as the priority.
