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She said on Saturday that it was a good sign that Virabongsa Ramangkura, chief economic adviser to the prime minister, promised to address the conflicts between the two institutions.

 Virabongsa, who earlier criticised the Bank of Thailand for the increases in policy rates, said on Friday that as the advisor, he would stop the criticism. 

Tarisa said that to solve the economic problems, it is necessary that the two institutes cooperate. Both monetary policy and fiscal policy must be exercised to address the problems.

"I believe that there is no conflict between the central bank and the ministry, if our decisions are based on similar information and if we take into account the country's benefit," she said.

 Tarisa also said that the Thai economy in the second half of this year might  slow down in line with the world economy. The inflation figure might not reach the double-digit level after the continued decline in global oil prices.

 Tarisa said that the central bank will closely monitor the global oil prices.

 The Commerce Ministry last month announced that July inflation hit a a fresh 10-year high of 9.2 per cent. 

 Tarisa said that the decrease in oil prices as well as the government's six measures could lower the inflation rate in the second half of the year.

The short term measures should be done along with the long term measures, she said. In her view, it is a right decision to raise policy rates to tame inflation, as this would ensure long-term stability to the economic growth.

Although the inflation figure is likely to lower, Tarisa said that there three main factors that encourage the central bank to tighten the monetary policy are: inflation expectation; the increase in domestic demand and resource utilsation; and the adjustment of goods prices.