Thai fiscal, monetary policies must work in step, says official

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    BANGKOK- Thailand’s fiscal and monetary policies must work in step as the government tries to revive the tourism-reliant economy after a recent wave of coronavirus infections, the finance minister said on Thursday.

    The government will focus on sustainable growth as stimulus measures, such as cash transfers, cannot be implemented indefinitely, Arkhom Termpittayapaisith told a business seminar.

    This year the government will continue to invest in infrastructure projects as current public investment is low, at only 20 percent of gross domestic product (GDP) compared with 40 percent in the past, he said.

    “What the government is doing is only short term. In the long run, we need to help business get up and running,” he said.

    “Monetary policy must continue to support fiscal policy,” Arkhom said.

    The central bank has left its benchmark interest rate at a record low of 0.50 percent since the middle of 2020 after cutting it by 75 basis points earlier that year to help alleviate the impact of the coronavirus pandemic. – Reuters