Finance mister Suchart Thadathamrongvej said the government’s policy on economic thriving amid the global financial crisis will focus on low rate of three major economic accelerators, including low interest rate, low baht value against the U.S. dollar, and low tax rates.

He said the policy will help the Thai economic expanded by not lower than 4.0 percent in the next year.

The first policy aims to increase liquidity in the economic system. The finance minister remarked that the gap between commercial banks’ low deposit rate of 2.0 percent and the Bank of Thailand’s bond repurchase rate of 3.75 percent has put deficiency liquidity at the markets while overly sufficiency at the central bank due to marginal gain speculation.

The second policy aims to help the export sector. Mr. Suchart said every fall by 1 baht against the U.S. dollar will increase the country’s export value by 178 billion baht even though the oil prices will increase by 10 satang per liter for such falling.

“Currency exchange gain is free money. On the other hand, this will boost the export of agricultural products due to an increase in buying power in the trade partner countries. The Chinese government also has the same policy,” Mr. Suchart said.

The third policy is targeted to cut both personal and corporate income taxes to sustain the country’s competitiveness in a long-run basis.

He said the government will also consider a deficit budgetary to compete with the regional leading rivals countries such as Hong Kong and Singapore.

The Bank of Thailand governor Tarisa Wattanagase said the central bank is mulling its policy rate cut following a sharp decline in inflation data.

She said the bank’s policy now shifted focus to sustainable economy rather than inflation stability.