Thailand’s inflation target range of 1% to 3% has been effective and should remain unchanged, according to a deputy central bank governor, who spoke on Thursday amid government efforts to set a higher inflation target to stimulate economic growth.
Piti Disyatat noted in an interview that inflation is currently low and stable, with no threat of deflation, as the economy approaches its typical growth rate. He expressed hope for a productive discussion regarding the inflation target for 2025 when Bank of Thailand and Ministry of Finance representatives meet next Tuesday.
“We aim for a constructive dialogue, and I’m optimistic about reaching an agreement,” he stated. Piti emphasized that there are no compelling reasons to modify the existing target.
He also mentioned that the unexpected interest rate cut from last week was a recalibration rather than the beginning of a trend toward easing. Additionally, Governor Sethaput Suthiwartnarueput indicated on Wednesday that another interest rate cut is unlikely at the final policy meeting scheduled for December 18. The central bank seeks to maintain a neutral stance, with potential adjustments contingent on significant changes in the macroeconomic landscape, according to Piti.
