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His recommendations follow concerns over liquidity in the economy as the government's additional budget deficit of Bt100 billion could suck out liquidity, discouraging borrowing by the real sector.

Suchart said in the economic slowdown the deposit interest rate should be higher than the repurchase interest rate.

The BOT's breakdown of bond issues along with the bond repurchase would improve liquidity in the real economy, which would help boost economic growth. About Bt1.5 trillion of BOT bonds have been in the banks' portfolio, he said.

"The government needs to issue the bonds to finance the budget deficit and the rice pledge worth a total of Bt110 billion. If the central bank does not reduce the bond issues, the liquidity will not be enough," he said.

The minister said he had already given his suggestions to the central bank, but the final decision depended on the BOT.

The minister earlier called for collaboration of fiscal and monetary policies to boost the economy amid the global economic slowdown. The minister said he was worried that shortage of liquidity would dent private investment.

Bank of Thailand Governor Tarisa Watanagase said separately that the banking system's lending has incessantly risen, with a 13.5percent growth in September.

The expansion has been reflected both in loans for consumers and the business sector's working capital and investment.

"The lending continues to expand although it will be provided to each economic sector unevenly," said Tarisa.

The central bank insisted that banks had liquidity enough to serve higher loan demand from corporates, which had shifted borrowing source to domestic market.

After the US financial turmoil, they have encountered escalating cost of borrowing and have had difficulty in accessing financial sources in the global market.

The BOT is to have a final meeting this year in December 3.