Thai Central Bank Chief Urges Shift From Rigid Inflation Target

Bank of Thailand Governor Sethaput Suthiwartnarueput says the country faces a lot of structural challenges, but he thinks the 2025 GDP growth target is intact. He speaks with Haslinda Amin on “Insight with Haslinda Amin.”Source: Bloomberg

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By Suttinee (Ying) Yuvejwattana

September 4, 2025 at 6:25 AM UTC

The Bank of Thailand’s outgoing Governor Sethaput Suthiwartnarueput urged moving away from specific inflation targeting, saying price trends will increasingly get upended by supply shocks that monetary policy won’t be well-suited to handle.

Thailand has regularly missed its official inflation target since a band was introduced in 2020, and Sethaput said the focus on a specific headline number has proven to be “counterproductive” because it piles pressure on rate-setters to cut borrowing costs, and ignores the implications on growth and financial stability.