Thailand to Retain Inflation Target in Victory for Central Bank
- Finance Ministry, BOT agree to retain 1-3% target for 2025
- Government demands BOT take steps to boost inflation, growth
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Thailand will stick to an inflation target of 1% to 3% for next year, a win for the central bank that has resisted the government’s demands to set a higher band to make room for price gains and spur further rate cuts.
The official target was agreed at a meeting between Finance Minister Pichai Chunhavajira and Bank of Thailand Governor Sethaput Suthiwartnarueput after a two-hour long meeting on Tuesday. But the deal is with caveats that the central bank takes measures to spur price gains to 2% and growth in Southeast Asia’s second-largest economy, according to Pichai.