##d and phased. this is so that risks from potential concentration of market power and financial instability are minimised. the final pillar aims to fill the gaps in institutional, including legal and information, infrastructure that are necessary for an efficient and modern financial system. we will be looking at the legal framework and other measures that would support a more effective functioning and supervision of financial institutions. these include sound credit culture ( e. g., bankruptcy and foreclosure laws ) and implementation of international best practices, such as new international accounting standards. on the information side, efforts will focus on the information infrastructure that would assist financial institutions in pricing and managing risks better. areas for improvements are, for example, the operation of the credit bureau, rating agency, and more complete data on key economic sectors such as the real estate and housing market, etc. on the whole, while the policy recommendations will largely cover bot - supervised financial institutions, those related to other types of financial institutions and broader financial markets can also be addressed if they are deemed to be systemically important. ladies and gentlemen, in closing, allow me to emphasize once again that thailand ’ s record of economic resiliency to adverse shocks and uncertainties in the past should clearly attest to the strength of our underlying fundamentals. the us and thailand are long - time partners, and i need not mention how crucial it is to both our economies that we strengthen our trade and investment partnership in the years ahead. going forward, the policy mix will centre on the fiscal prudence and public investment in basic infrastructure and the bank of thailand ’ s commitment to maintaining economic and financial stability. these together should translate into moderate long - term cost of investment financing and sustained economic expansion for thailand. we live in the global economic and financial environment that is highly uncertain. policymakers need always to be aware of what is in store for us so that we use the policy room available to craft the right and flexible macroeconomic policy mix that is best suited to changing circumstances. at the same time, with the collaboration of our trade and investment partners, we must remain firmly committed on the national goal of enhancing the economy ’ s productivity and competitiveness. thank you for your attention.

. the thai financial markets remained resilient through 2007 with only moderate fluctuations. though credit and deposit grew slowly last year as domestic demand was weak, profitability of banks and financial institutions were satisfactory and the overall non - performing loans in the banking system remained moderate. ladies and gentlemen, against the background of sound monetary and financial stability, the growth momentum of the thai economy is expected to gain strength through the year 2008. this trend is envisaged, notwithstanding rising financial disruptions and ebbing confidence in the us and across the world as regards the global economic prospects, linked to the sub - prime woes in the us. overall, reflecting the solid fundamentals and the resiliency of the thai economy, the monetary policy committee expects that the thai economy will grow by 4. 8 - 6 percent this year. however, due to continued high prices of energy and food, headline inflation is expected to be in a range of 4. 0 - 5. 0 percent for the whole of 2008. having said this, the underlying inflationary pressure should be well contained as the core inflation forecast of 1. 52. 5 percent still remains within the target. during the first two months of this year, private consumption and investment are firming up after recovering during the fourth quarter last year. clearer political landscape post - election and continued spending by the government have helped revive confidence in private investment and consumption, which constitute almost 70 percent of total demand in thailand. indeed, confidence is one of the several factors underpinning private consumption expansion, in addition to fiscal stimulus measures, and agricultural prices. on this note, i should say that the strong growth of farm income has helped maintain consumption momentum especially that of non - durables during periods when confidence was weak. in 2006 and 2007, farm income grew by 32. 7 and 16. 6 percent, respectively. now, we are seeing a pick - up of consumption of durable goods as confidence increases, which is aided in part by the continued strong growth of farm income by 25. 8 percent during the first two months of 2008. private investment, an important growth engine, had been held back over the past few years. however, private investment indicators have risen steady since the second half of last year, prior to the pick - up in consumption, reflecting the continued high capacity utilization well above the 70 percent mark. now that the government has announced the clear implementation plan for public investment over the next 5 years, the public sector ’ s commitment to invest heavily where it