Smooth election to uplift Thailand’s credibility

The Bank of Thailand (BoT) has indicated that the recent smooth and peaceful 3 July general election will play a significant role in improving the nation’s credibility in the global arena.

raising the According to BoT Governor Dr Prasarn Trairatvorakul, the election, which went on smoothly and of which the results accepted by both the Democrat and Pheu Thai Parties, will be positive factors for Thailand in having its credibility raised by international rating firms.

The governor added that credit rating companies will also take into account Thailand’s ability to service its debts in their rating consideration.

Dr Prasarn noted that the BoT will monitor populist policies launched by political parties during election campaigns; which will be made clearer in the new government’s policy address to Parliament. He said he will see how much they will affect the financial status of the nation.

Regarding the six urgent policies of the new government and concerns over rising inflation, the governor responded that he will have to look into details of each policy again after they are announced to Parliament, then he will be able to say whether they will have pressure on inflation or the country’s public debt ratio.

Among the six policies are: the revocation of levy on certain types of fuel, minimum wage hike to 300 baht per day, salary hike for undergraduate degree holders to 15,000 baht per month.

Asked about reports that the new government will interfere in the exchange rate policy of the BoT, Dr Prasarn refused to comment, reasoning that his response could affect the present exchange rates.