Bank of Thailand Expects Inflation to be Under Target Range, Iterated Uncertainity about Tourism

The governor of Bank of Thailand said, inflation in Thailand will largely be “contained” as price pressure in the country are not as broad based compared to developed nations.

Governor Sethaput Suthiwartnarueput said inflation will remain within the central bank’s target range of between 1% and 3%.

Earlier inflation in January came in about 3.2%. The chief of Thai central bank explained inflationary pressure are largely centered around “energy space and with certain kinds of important food prices, like pork,”.

The central bank also kept key policy rate unchanged at record low of 0.5% in announced in an earlier statement.

“In the period ahead, there remained a need to closely monitor developments of global energy prices and domestic goods and services prices, as well as the possibility of growing wage pressures,” the central bank said.

“A lot of our recovery is contingent upon what happens in terms of our tourism recovery,” said Suthiwartnarueput. He urged the government remains concerned about future variants of COVID.

“If a new variant comes out sometime during winter, which is close to the tourism high season, that would be… the kind of risks that we’re concerned,” he added.

“Nevertheless, the foreign tourist figures remained low as international travel restrictions in many countries remained in place,” he addded.