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BANGKOK, March 22 (Reuters) - Thailand's economy is
expected to expand 3%-4% this year and monetary and fiscal
policies must work together to ensure economic growth and
stability, the finance minister said on Wednesday.
Southeast Asia's second-largest economy continues to be
supported by the vital tourism sector while exports weaken as
global demand slows, Arkhom Termpittayapaisith told a business
seminar.
The number of foreign tourist arrivals could reach 27
million this year, up from last year's 11.15 million, he said.
As inflation eases, there is no need for Thailand's monetary
policy to follow U.S. monetary moves, Arkhom said.
"The direction of the Thai policy rate will not follow that
of the U.S., and it must ensure the economy can fully recover,"
he said.
The Bank of Thailand is expected to raise its key rate by a
modest quarter point at its next meeting on March 29.
Arkhom reiterated there has been no impact on Thailand from
the problems in the global banking sector.
Thailand's fiscal position was stable as its public debt
- at 61.26% of gross domestic product (GDP) as of February - was
not very high, and foreign debt was also low, he said.
As Thailand will hold an election on May 14, government
spending should continue as usual but there may be some impact
on new investment projects before a new government is formed,
Arkhom told reporters on the sidelines of the seminar.
The baht currency is likely to remain volatile,
driven by external factors, but its moves have stayed within a
range seen earlier in the year, he said.
"I want the baht to be stable, but (we) should not look it
daily," he added.
(Reporting by Kitiphong Thaichareon; Writing by Orathai
Sriring; Editing by Martin Petty, Kanupriya Kapoor)
