TDRI acting president Dr Ammar Siamwalla said the institute would continue its tradition and practice of providing the public with technical and policy analysis for the benefit of social and economic development.

The institute's former president, Chalongphob Sussangkarn, was last week appointed Finance Minister, replacing MR Pridiyathorn Devakula who resigned.

"We will maintain our organisation's culture and, backed up by our research, we will criticise the government's policies," economist Ammar said.

Ousted prime minister Thaksin Shinawatra often accused Ammar and others at the institute as being biased. Nevertheless, government agencies continue to use its research.

Ammar yesterday recommended fiscal expansion and the easing of monetary policy to aid the slowing economy. This is a quick fix and a detailed study of macroeconomics is required, he said.

He believed the new finance minister would not intervene in the affairs of the Bank of Thailand in spite of Chalongphob's disagreement with its controversial capital-control measure imposed in December.

"Chalongphob used to be member of the bank's monetary policy committee and is well aware of the positives of the central bank's independence," he said.

Ammar prefers a sharp cut in interest rates - about 50 basis points. This will send a signal to the markets that the bank will not alter rates again for the next six to 12 months, he said. This will also restrain the rising baht.

Gradual rate cuts will lead to rises on the stock market and invite capital inflows and the baht will rise further, Ammar said.

Wichit Chaitrong

The Nation