The Ministry of Finance has called on the Bank of Thailand (BOT) to adopt pro-economic monetary policies, including setting appropriate policy interest rates, to maintain the bank’s proposed inflation framework between 1 and 3 percent. .
Deputy Prime Minister and Finance Minister Pichai Chunhavajira met with BOT Governor Setaput Sutiwartnaruept on Tuesday to discuss monetary policy before setting the 2025 target inflation framework to be presented to the cabinet in December.
Thailand has set a headline inflation target of 1% to 3% for the past nine years, but the inflation rate did not meet the target in three of those years (2018, 2021 and 2023).
“Setting the framework for an inflation target is a secondary issue, as inflation can fluctuate based on a variety of factors such as investment, revenue, and purchasing power. Therefore, setting an inflation target framework is a secondary issue. Even if it is set at 3%, it may not have a significant effect.” meeting.
The ministry said it intended to maintain its previous target of 1-3%. However, it added that actual inflation would need to exceed 1% and could rise to a suitable point or median of 2%.
“To maintain inflation at an appropriate level, the BOT and the Monetary Policy Committee (MPC) need to adopt monetary policies that promote economic growth,” the minister said. “This includes setting appropriate policy interest rates to encourage foreign direct investment and help maintain Thailand’s competitiveness against competitors.”
