BANGKOK, Nov 17 (TNA)  The Thai economy is projected to slow down in parallel with the economies of the United States and China next year, according to a veteran banker.
Kosit Punpiumrat, the Executive Chairman of Bangkok Bank Public Company Limited, said the bank had planned to revise the countrys economic growth estimate for 2005 on 1 December since it had obtained latest economic data of September.
The growth projection would be revised based on real economic conditions by taking additional positive and negative factors into consideration, he said.
Previously, the bank estimated that the Thai economy would expand around 5-6% next year.
He said the Thai economy was likely to grow at a slower pace next year since many countries, particularly such key trade partners as China and the US, had attempted to put a brake on the economic growth by increasing interest rates.
He believed the US Federal Reserve would decide to raise its key interest rates once again before the end of this year.
The interest hike should be seen a normal phenomenon when an economy expands because many countries want to see interest rates stand close to inflation rates, he said.
Dr. Kosit said the local interest rate direction would depend mainly on the Bank of Thailand (BOT)s policy.
He conceded that some banks had begun to raise short-term interest rates because excess liquidity in the system had declined.
However, he reiterated that Bangkok Bank would not change interest rates for this year since it still has enough liquidity.
He added although the Thai economy would expand only 5% next year, it would not have any impact on the banks performance since its average business growth was close to that rate.
Dr. Kosit projected that the banks performance next year would grow at a similar rate to that of this year, and its lending would grow around 5-6%. (TNA)  E005
Thai media mogul and outspoken critic of the current government, Sondhi Limthongkul faces arrest should he fail to answer a second summons over lèse majesté allegations.

Instead of turning up to face the police yesterday, Sondhi sent his lawyer to deliver a written testimonial, and a variety of other evidence.  The accusation that he insulted or attacked the monarch centres around speeches made at a number of the rallies organised by the People's Alliance for Democracy (PAD) during their ongoing campaign to remove caretaker Prime Minister Thaksin Shinawatra.

When the summons was first issued on April 10, the country's justice minister, Chidchai Vanasatidya, quickly denied accusations that the charges were government-orchestrated. Chidchai, currently acting as Prime Minister said, "I affirm that the summoning has nothing to do with politics".

Sondhi has been given another seven days to surrender himself to police for questioning.