BANGKOK, 9 May 2013 The Thailand Development Research Institute (TDRI) has predicted a 5 percent growth in the country’s gross domestic product (GDP) this year, while suggesting that the Bank of Thailand and the Ministry of Finance work together to fix strong baht situation.
TDRI Research Director Somchai Jitsuchon has suggested the BoT and the Finance Ministry should combine their strategies and tactics for the maximum benefit of the country. He said even if the BoT adjusted its key interest rate, it would probably be unable to stop the capital influx because most of the money flowing into the country came in the form of long-term bonds. So, by lowering interest rate would not help the baht situation.
However, he said if looking at the bright side, the baht’s strength could have a positive effect in the long run, claiming that it would help restructure the Thai economic system, leading to less dependence on the country’s exports.
The director said the TDRI would maintain the country’s growth target this year at 5 percent.