Thai Central Bank Maintains Inflation Target at 1-3% Next Year

On Tuesday, Thai ministry approved the Bank of Thailand’s headline inflation of 1-3% next year, the same rate as 2022, according to the statement from government spokesperson Traisuree Taisaranakul.

The inflation target was ruled by monetary policy and reconsidered annually.

In November, headline inflation stood at 5.55%, going further than the Bank of Thailand expected. With inflation remaining at a higher level, the market is anticipating that the BOT would increase the interest rate to restrain cost pressure.

The Bank of Thailand projected that  headline inflation will average at 6.3% in 2022 before falling to 3.0% next year.

The central bank raised its benchmark rate by 75 basis points since August to 1.25%. It was expected by economists that it would rise higher in the next assembly on Jan. 25.