Deputy Prime Minister Somkid Jatusripitak and his economic team last month launched a wave of stimulus measures to ward off downside risks stemming from weak exports. The government has launched three packages to put money in the pockets of rural residents, give beleaguered small and medium-sized enterprises (SMEs) better access to funding and help property developers release their massive inventory.
The final stimulus, soon to be introduced, is aimed at motivating investors in the coming months.
Fiscal stimulus is preferred to monetary easing because the Bank of Thailand's 1.5% policy rate is deemed accommodative to recovery, said Mr Sarun, adding that soft loans to SMEs and cheap mortgage loans by the state-owned GH Bank are considered quasi-monetary policies.
As part of the property stimulus, GH Bank has a 10-billion-baht scheme offering housing loans to those buying homes worth up to 3 million baht each.
The bank charges borrowers 3.5% for the first year, 4.25% for the second year and the minimum retail rate minus 0.7 points throughout the term for general borrowers and MRR minus one point for employees of companies taking advantage of special offers by the bank.