BANGKOK- Thailand’s headline inflation rate is expected to top the central bank’s forecast of 1.7 percent this year, but should remain within its target range, central bank officials said on Friday.
Inflation would exceed the Bank of Thailand (BOT)’s target range of 1-3 percent in early 2022 before falling in the second half of the year, they said.
“For the whole year, we still look at no more than 3 percent,” senior director SakkapopPanyanukul told a news conference.
Sakkapop said most economic indicators were largely in line with the BOT’s estimates so far this year, though there was an improvement in exports and a rise in inflation. In January, inflation jumped to a nine-month high of 3.23 percent.
The BOT has forecast economic growth of 3.4 percent this year, with exports rising 3.5 percent. It is due to update that data next month.
On Wednesday, the BOT left its key interest rate unchanged at a record low of 0.50 percent and ruled out an immediate need to adjust despite higher inflation and looming US policy tightening.
The BOT reiterated that planned interest rate hikes from the US Federal Reserve would have little impact on Thailand as its external stability remains strong with high foreign reserves and low foreign debt.
