Surapong to meet BOT chief Tarisa discussion on best way forward

Surapong, and Virabongsa Ramangkura, the chief econom¬ic adviser to Prime Minister Samak Sundaravej, had strong¬ly objected to the central bank's rate hike to fight inflation. The starkly different stance has raised speculation that Tarisa might be sacked.

Surapong said the economic situation in the past six months would be discussed at the meet¬ing. The meeting will also discuss the economic outlook for the next six months, he said.

He insisted he will not inter¬vene in monetary policy. "I think the MPC [the central bank's Monetary Policy Committee] will decide on the rate based on information," Surapong said, in response to speculation that the MPC might raise the rate at the next meeting to show the central bank is independent from the government.

The market expects the cen¬tral bank to leave its policy rate unchanged at 3.50 per cent dur¬ing the MPC meeting on August 27. The recent slide in crude oil prices has decreased inflation¬ary pressure to some extent. Economic conditions in devel¬oped countries have been worse than expected, threatening eco¬nomic recession and adversely impacting Thailand's exports.

Somchai Sujjapongse, the Finance Ministry spokesman, said that government revenue last month rose 22.1 per cent year on year to Bt105.5 billion. High imports of crude oil and natural gas contributed to high collec¬tion of valueadded tax. Transfers from state enterprises also increased more than previ¬ously estimated.

In a related development, Surapong said the government would organise an exhibition from September 1214 on megaproject investment. Foreign investors and fund mangers will be invited to participate. The public is also invited to the exhi¬bition to be held at Bangkok's Queen Sirikit National Convention Centre.

The government plans to invest Bt 1.7 trillion over the next four years in mass transit, logis¬tics, irrigation, energy, education and public health. Stateowned enterprises such as PTT will also lay out their investment plans.