0		Thai, Banks, Clash, with, Central Bank

p>10.53-Thai Banks have came out to criticized the central banks’ continued focus on inflation targeting as being the wrong policy, when in fact, the central bank should ease and inject liquidity into the system, bankers say.

This is the strongest criticism of the central bank ever since Surapong and Dr Krong, a highly respected tecnocrat who warned Thailand of a liquidity crunch, came out and attacked the central bank for not easing. The conflict between the government and the central bank reached the climax with Number One siding with the central bank. And the government backed down. The current stand-off between commercial banks and the central bank elevates the crisis in Thailand’s monetary policy direction to a higher level.

One after another foreign economy are trying to avert a Wall Street crisis turning into a local economic crisis by injectibe capital into their respected economies.