BANGKOK: Thailand’s inflation is likely to come in below the Bank of Thailand’s forecast of 2.8% this year and ease next year, the central bank governor said last Saturday, adding that monetary policy would remain accommodative and focused on supporting the economy.
Monthly inflation in the fourth quarter is now expected to be less than 4.5% previously projected, and ease next year, allowing the central bank to look through temporary price pressures, governor Vitai Ratanakorn told reporters.
Headline inflation slowed to 2.42% in June, remaining within the central bank’s 1% to 3% target range and below expectations.
Vitai said last month that there was no need to raise interest rates for now, days after the central bank left its key rate unchanged at 1%.
The next monetary policy review is on Aug 26.
Any further rate reductions would not be easy as the current rate level is already very low, and keeping rates too low could hurt savers and have broader negative impacts, Vitai said. — Reuters
