Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Thai cbank sees no need for inflation target change, no easing cycle ahead

admin by admin
October 24, 2024
in Economy
0
Thai cbank sees no need for inflation target change, no easing cycle ahead
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

By Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai

BANGKOK (Reuters) – Thailand’s current inflation target range of 1% to 3% has “served pretty well” and should not be changed, a deputy central bank governor told Reuters on Thursday, as the government pushes for a higher price target to boost economic activity.

Inflation is low and well anchored, and there is no risk of deflation, while the economy is converging to trend growth, Bank of Thailand (BOT) Deputy Governor Piti Disyatat said in an interview. 

The BOT has been at odds for nearly a year with a government that has complained repeatedly that the central bank’s refusal until last week to cut interest rates has stymied its efforts to revive a flagging economy.

Piti said he was hoping for agreement and a constructive discussion on the inflation target for 2025 when the BOT and finance ministry meet next Tuesday.

“We are mandated to agree, the law tells us to have to agree,” he said.  

Asked if the central bank was still in conflict with the government, Piti said: “We are not fighting with anyone”.

Despite last week’s surprise rate cut, Finance Minister Pichai Chunhavajira still called for a higher target to lift inflation, which was just 0.61% in September, with the government pushing for a review of the existing target, which has been in place since 2020.

The target is reviewed annually and agreed by the BOT and finance ministry. 

Piti said lifting that would increase inflation expectations and bond yields, which would have consequences for financing for the private sector and for the government, on the outstanding debt, which was not low. 

“Looking back up to now, I think it’s served pretty well,” he said of the current target. “So we don’t see any very clear reasons right now to really change it.”    

Headline inflation would be close to 1% in October, he said, and above 1% in November, returning to within the target.

NO EASING CYCLE

Piti reiterated that last week’s interest rate cut, the first reduction since 2020, was a recalibration and not the start of an easing cycle.

The cut was to help ease the debt burden on borrowers without derailing the deleveraging process, he said.

The central bank is aiming for a neutral stance, and policy could be adjusted if the macroeconomic picture changes materially, Piti said.

Thailand’s economy, Southeast Asia’s second largest, is expected to have grown 2.7% to 2.8% in the third quarter from a year earlier, he said, up from the second-quarter’s 2.3% growth.

The BOT last week raised its 2024 GDP growth forecast to 2.7 from 2.6% but trimmed its 2025 growth outlook to 2.9% from 3.0%. Last year’s expansion of 1.9% lagged regional peers.

The Thai baht was still aligned with economic fundamentals, Piti said, and the central bank would only smooth out excessive volatility in the currency.

“But for the most part, we let the market determine the level of the exchange rates,” he said.

On the U.S. elections, Piti said “no matter who wins, we think, will increase trade tensions with China”, which would be a challenge for Thailand. There would also be more volatility in financial markets, he added.    

This post appeared first on investing.com

Previous Post

Luckin Coffee stock analysis: Is Cotti Coffee a big threat?

Next Post

Exclusive-Pakistan formally requests IMF RST money, targeting $1 billion, finance minister says

admin

admin

Next Post
Exclusive-Pakistan formally requests IMF RST money, targeting $1 billion, finance minister says

Exclusive-Pakistan formally requests IMF RST money, targeting $1 billion, finance minister says

Trending News

Raytheon secures $1.3 billion F-35 engine support contract

Raytheon secures $1.3 billion F-35 engine support contract

December 3, 2024
Trump appoints lawyer Stanley Woodward to White House role

Trump appoints lawyer Stanley Woodward to White House role

January 5, 2025
Long ESTC:  Elastic’s Robust Earnings and AI Initiatives Propel Bullish Stock Momentum

Long ESTC:  Elastic’s Robust Earnings and AI Initiatives Propel Bullish Stock Momentum

March 3, 2025
Subscribe to Insightful Word


    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025
    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    June 6, 2025
    Starlink reportedly secures key licence in India, moves closer to launching services

    Starlink reportedly secures key licence in India, moves closer to launching services

    June 6, 2025

    Recent News

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll

    June 6, 2025
    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025

    Latest News

    • China’s May export growth seen slowing to 5.0% amid trade uncertainty: Reuters poll
    • FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more
    • Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.