“Pichai” urges the “Bank of Thailand” to hasten to issue monetary policy to support the recovery of the economy. Don’t do the opposite, pointing out 5 major economic problems that The BoT must help fix it. Suggestions to reduce the loan-deposit gap Solving household debt problems – bad debts Increase liquidity Set the exchange rate and interest in line with the economic expansion.
Today (10 Jan. 2023) Mr. Pichai Naripthaphan, Advisor to the Prime Minister and Vice President of Strategy and Politics, Pheu Thai Party, said that as he has called on the Bank of Thailand (BoT) to issue monetary policy that is no less important than fiscal policy. To help revive the Thai economy that has been stagnant for a long time, the BoT has many tools to support it. Recently, there has been a trend of dissatisfaction among many people who found that Commercial banks have a combined profit of more than 220 billion baht in 2023, despite the Thai economy still being poor. And the Thai economy is still expanding at a very low rate, so I would like the BoT to have measures to control commercial banks from taking advantage of the people too much.
Mr. Pichai further said that if you look back to 2020, when Thailand experienced the COVID-19 virus crisis. The Thai economy is negative -6.1%, but the profits of all commercial banks are still huge, reaching 146 billion baht, while commercial banks in other countries are making losses from the economic downturn. Makes many citizens doubt the efficiency of the BoT’s supervision of allowing commercial banks to take advantage of the public, right? In addition, commercial bank lending is still uneven. Many small businesses are unable to get loans. These are just some of the stories.
“We therefore want to call on the BoT to revise and expedite monetary policy to support economic recovery,” Nanpichai said.
Advisor to the Prime Minister further said that the BoT should show how the BoT will support the resolution. Five major economic problems are as follows:
1. The problem of the Thai economy expanding has been low for a long time. And there is still a trend that this year’s growth will be low again. It is unlikely to expand as the BoT predicts. This is because the global economy is forecasted to expand by only over 2% in 2024, and over the past 5 years, the Thai economy has always expanded lower than the world economy. and the Thai economy still expanded lower than expected. The BoT has always expected this as well. In addition, the private sector agrees that the Thai economy this year is not likely to be very good.
2. Household debt that is higher than 16.5 trillion baht or more than 90% of GDP. How will the BoT help solve it, including debt of SMEs and bad debt in the banking system? and informal debt
3. Inflation that has been negative for 3 consecutive months from Oct. 2023 at -0.31%, Nov. 2023 at -0.44% and Dec. 2023 at -0.83% and January 2024 inflation is also likely. will be negative again After Thai inflation had been low for the previous 5 months before falling into negative territory. It should put Thailand into deflation. How will the BoT help fix it?
4. Negative exports in 2023 and low export growth in 2024. How can the BoT help?
and 5. Liquidity in the financial system and liquidity in the economic system have greatly decreased. How can the BoT help?
“I would like the BoT to explain how it will help resolve the 5 issues mentioned here. Because from what I’ve heard, like the BoT, everything is going well. The economic engine is fully moving forward. This may be contrary to what citizens and business people are experiencing. The BoT may not do anything. Because I think everything is fine. This is unlikely to be the correct approach,” Mr. Pichai said.
Mr. Pichai also said that the BoT has many tools to help support the Thai economy to recover and expand further, whether it be setting interest rates and exchange rates to be in line with economic growth, reducing the gap. Free up loans and deposits of commercial banks, adding liquidity into the economy. and assistance in resolving household debt, bad debt, and informal debt, etc.
“I probably wouldn’t recommend it. The BoT tells what to do because the BoT should have information. and guidelines for support to resolve these matters already exist. in measures and at the appropriate time I just want to have the same idea in reviving the economy. In order for the people to have a better quality of life,” the Prime Minister’s advisor stated.
Mr. Pichai further emphasized at the end that Maintaining financial stability But the economy is at a low level of growth, which will not allow Thailand to move from a middle-income country to a high-income country. and in the end it will be unstable. Because people will face great hardship from not being able to earn enough income, we would like the BoT to carefully consider this matter.
2024-01-10 02:17:00
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