"But it depends on the MPC's view if the rate should be lowered 25 basis points or 50 basis points," he told reporters after the economic steering committee.

"The business sector will feel the rate cut impact 3-6 months later. Indeed, the previous cuts should have sent a gradual impact on the economy."

Kosit said the committee also concluded that private investment and consumer spending has showed positive signs, due to the government's acceleration in budget disbursement. The meeting also considered a survey of the University of Thai Chamber of Commerce, which showed that consumer spending should pick up in the third quarter.

The committee is of the view that rate cuts and tax measures would boost the sagging economy, Kosit said, adding that tomorrow (May 22) the committee will seek a joint discussion with ministerial representatives, the Federation of Thai Industries, the Board of Trade and the Thai Bankers Association on further assistance measures to business sectors which have been affected by deteriorating consumption.

The Nation