BANGKOK (Reuters) – Thailand’s finance minister said on Wednesday monetary policy must remain accommodative and be in line with fiscal policy to support Southeast Asia’s second-largest economy.
Speaking at a corporate seminar, Finance Minister Arkhom Termpittayapaisith also said exports should be able to support economic growth this year.
“Monetary policy has to be accommodative for fiscal policy to work,” he said. “Our loan is good for the economy right now.”
The central bank is largely expected to keep its key interest rate at an all-time high of 0.50% later Wednesday.
Last week, the government raised the public debt ceiling here for more fiscal flexibility and future borrowing if needed, a move backed by the central bank.
The government will borrow domestically for now, but may seek foreign loans if the economy recovers, Arkhom said.
Despite a prolonged coronavirus outbreak, “we still see the light at the end of the tunnel,” he said, adding that the economy is expected to grow this year.
On Monday, Arkhom said it still expected economic growth of 1.3% this year.
The country needs “economical vaccines” to fight the epidemic, he said, referring to more economic support measures that will be introduced later this year to boost consumption and support small businesses. companies.
Reporting by Orathai Sriring, Kitiphong Thaichareon, Satawasin Staporncharnchai; Editing by Ed Davies