Thai govt seeks higher inflation target to enable rate cutThai Finance Minister Pichai Chunhavajira (Photo: Government House)Thailand’s Finance Ministry plans to propose a higher inflation target of 1.5%-3.5% for next year, adding pressure on the central bank to cut its key interest rate, according to people familiar with the matter. The central bank and the Finance Ministry need to agree on the target before it’s sent to the Cabinet for approval. BoT Governor Sethaput Suthiwartnarueput has said rate settings are neutral for Thailand’s economic and financial conditions, and called for central bank decisions to be free from interference. The Bangkok Post first reported the new target being pushed by the Finance Ministry. While the BoT chairman doesn’t have powers to dictate monetary policy, the official can evaluate the central bank governor’s performance.

Source: Bangkok Post October 07, 2024 12:30 UTC