Thailand eyes higher inflation target next year

Thailand’s Finance Ministry is planning to propose a higher inflation target of 1.5-3.5 per cent for next year, which could lead to pressure on the central bank to lower its key interest rate.

The ministry is set to discuss this with the Bank of Thailand (BOT) later this month to finalise the price band. This move comes as consumer prices rose by only 0.6 per cent in September, below the current 1-3 per cent target.

The government is also seeking to influence the central bank by proposing a new chairman who is critical of the bank’s current monetary policy. The decision on the new chairman is expected soon.

Attribution: Bloomberg

Subediting: M. S. Salama