Yingluck pledge to tackle strong baht
- Published: 14/05/2013 at 04:04 PM
- Online news:
The government has pledged to tackle the appreciation of the baht by stepping up interest rate discussions between the Finance Ministry and the Bank of Thailand, Prime Minister Yingluck Shinawatra said.
Prime Minister Yingluck Shinawatra speaks next to Finance Minister Kittirat Na-Ranong during a debate in Parliament in this file photo. The government wants to tackle the strong baht by holding discussions on interest rates with the Bank of Thailand. (AFP Photo)
Ms Yingluck said the cabinet has authorised Finance Minister Kittiratt Na-Ranong to press ahead with meetings to address the issue, bringing together representatives from government, the central bank and the private sector.
Ms Yingluck said the meetings would consider how to stabilise the strong baht, in order to protect manufacturers and exporters in the private sector.
Finance Minister Kittirat Na-Ranong has been putting pressure on Bank of Thailand governor Prasarn Trairatvorakul to cut the key policy interest rate to help curb the currency's appreciation.
The minister said last month that Mr Prasarn should be replaced because he had ignored calls to deal with the strong baht.
Mr Prasarn has now said that the central bank will consider cutting the policy rate, but only once economic data for the first quarter of this year is published later this month.
Ms Yingluck said she hoped that the meetings would lead to "close cooperation in dealing with the strengthening baht between the Ministry of Finance and the Bank of Thailand”.
“Manufacturers and exporters affected by the impact of the strong baht also want the two state agencies to closely work together," she said.
"But their roles must be separated. The Finance Ministry will oversee overall outlook, while the central bank will be responsible for preparing all needed measures for implementation when it is necessary."
Asked about the difference of opinion between Mr Kittiratt and Mr Prasarn, Ms Yingluck said they hold opposing views, but are both committed to the same objective of stabilising the baht and the economy.
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