By Kitiphong Thaichareon and Orathai Sriring
BANGKOK- Thailand’s finance ministry and central bank have agreed to maintain the current inflation target, the finance minister said on Tuesday, after a meeting of the two parties in which the government had sought a higher target to spur growth.
Finance Minister Pichai Chunhavajira met Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput and said the current 1 percent to 3 percent range in place since 2020 would be held, adding the BOT had agreed to support fiscal policy to boost growth.
The government has pushed for a higher inflation goal from the current 1 percent to 3 percent range to spur a sluggish economy, while the central bank has insisted the target, which has been in place since 2020, has worked well for the economy.
Actual inflation should move to 2 percent, Pichai said, adding that the central bank should consider inflation, foreign exchange when conducting monetary policy.
Pichai ahead of the meeting had said inflation would miss the target this year, as average annual headline inflation was just 0.20 percent in the first nine months of 2024. – Reuters
