Bangkok, Thammasat University economists believe that the government and the Bank of Thailand are interested in the country's interests. Propose to join in the press conference - create a roadmap to work together Driving the country's economy Point out that banks around the world are reducing interest rates gradually. Asst. Prof. Dr. Kiatnan Luankaew, Lecturer, Faculty of Economics Thammasat University Revealing the issue of reducing policy interest rates The government wants the Bank of Thailand to reduce interest rates. To help stimulate the economy But the Bank of Thailand (BoT) sees things differently. This is considered part of what has become a trend. It comes from the announcement of the bank's highly profitable results. Therefore, it is seen that interest rates should be reduced to help reduce the burden on the people. Including concerns that if interest rates are too high, various policies will not be effective. In this regard, it is considered that even if the National Bank actually cuts interest rates, it will not be able to reduce interest rates in such a dramatic manner that it will cause a significant change. This is because the principle of reducing interest will be gradually. Because if it decreases too quickly it will affect the exchange rate. Investor confidence and currency flowing in and out of the country which will affect the overall economy. which the central bank of each country Around the world, interest rates will be reduced gradually. for the economy to adjust In addition, the Bank of Thailand has experts on interest rates and views that maintaining interest rates is beneficial to the government. This is because if interest rates are reduced, even though it will help households somewhat, it will not be much. Although it stimulates purchasing power in the country, it is not the purchasing power that comes from money in one's pocket. But it is the purchasing power that arises from borrowing that causes household debt to increase, which will make management more difficult and affect oth er government policies. However, even after reducing interest rates, purchasing power has actually recovered. Products will become more expensive. The cost of living has increased. And now that Thailand is experiencing a drought, this will be an additional factor that will make things even more expensive. In addition, if there is an increase in the minimum wage. Various things will become more expensive as a result. If this happens, the government will face lower interest rates, drought, and increased inflation. Therefore, maintaining interest rates is to control inflation, which will also affect the exchange rate. The government will focus on solving export problems. Without having to worry about the value of the baht affecting exports. As for the case where it is viewed that reducing the interest burden will help reduce household debt. It is seen that there is no immediate help in reducing it. For example, if you have a debt of 100 baht, you must repay it in installments at an interest rate from 2% to 1%, which means you will lose interest from 2 baht down to 1 baht, considered not to have changed much. And if you have long-term debt, the interest will be fixed and float according to the market. Therefore, reducing interest rates will clearly reduce the debt burden. Therefore, what can be done is increasing the income of the people will help more. 'I believe that both sides have good intentions for the country and the government wants to help the people. The National Bank wants the economy to move forward. But when speaking to each other at different times, there may be misunderstandings. But if there is a joint press conference table simultaneously show the forward direction It came out as a road map. that the government and the National Bank will work together It will become a good sign. Make people feel at ease People who dare to spend money increase the purchasing power of the real economy. Household debt burden decreased It is considered that the Thai economy will be at full capacity for 18 months. If it does not recover after this, it is believed that it will not be able to keep up with other countries,' said Asst. Prof. Dr. Kiatnanan. As for the matter of dismissing the BoT governor, according to international law, it must go through an audit committee. And it must be caused by an operation that causes serious damage to the country or financial institution. Moreover, if the Governor of the National BoT is fired, it is not an action by the government or there is a group or individual recruiting his child to do it. To the government, they will be viewed as goats anyway. In this regard, there is a BoT Governor who is elected by appointment. which follows the principles of public law Those who are elected carry the consensus of the people. In which direction will it go? Therefore, the National Bank acts as a reinforcement to the government. By using monetary policy to create a stable economic environment. This allows the government to use other policies. To develop the country, stimulate the economy and solve the desired problems. Source: Thai News Agency