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Did Tarisa Crack Again Under Government Pressure? |
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Thursday, 14 August 2008 |
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A markedly less anti-inflationary tone coming out of Thailand's central bank once again raises concerns over the bank's independence. Speaking on Saturday, Bank of Thailand governor Tarisa Watanagase pointed to lower oil prices as she played down the likelihood of further rate increases and called for greater coordination between fiscal and monetary policy. Tarisa's comments come following weeks of snipping by Finance Minister Surapong over the correct course of action to help the ailing Thai economy. It would appear for the moment the government's growth-oriented policy has won out over Tarisa's focus on controlling inflation. More worrying is whether the central bank backed away from its own convictions for reasons other than slumping oil prices.
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