Thailand’s inflation has remained below the target for a sixth straight month at 0.95% in November, and that has added pressure for the monetary authority to reduce borrowing costs. Still, on Dec 18, BOT left its key interest rate unchanged at 2.25% following a surprise cut in October.
Bank of Thailand (BOT) expects inflation to stay within the 1% to 3% target range in the next two years, Governor Sethaput Suthiwartnarueput said, describing the band as appropriate and supportive of the nation’s growth potential.
The central bank chief said the inflation target, which has been kept for a fifth straight year, has “a proven track record of anchoring medium-term inflation expectations” and provides “sufficient flexibility towards accommodating inflation volatility from external and supply-side shocks,” he said in a statement days after the Cabinet approved the monetary policy target for 2025.
