BANGKOK (Reuters) – Thailand’s authorities nonetheless needs to see a better inflation goal that may push up costs, the finance minister mentioned on Thursday after the central financial institution’s shock rate of interest lower a day earlier.
Wednesday’s price discount will assist improve liquidity and confidence, Pichai Chunhavajira informed reporters.
The central financial institution unexpectedly lower its key price by 25 foundation factors to 2.25%, the primary discount since 2020, following repeated calls by the federal government to ease coverage to assist revive Southeast Asia’s second-largest economic system.
The central financial institution ought to take into account the development of rates of interest in different nations when subsequent deciding charges, Pichai mentioned.
Nonetheless, Pichai mentioned a better inflation goal for 2025 can be fascinating as he deliberate to debate the present inflation goal of 1% to three% with the central financial institution this month.
“A better inflation goal will assist improve inflation as a result of this 12 months it is clear that inflation has not reached the goal but,” he mentioned.
“We wish to see inflation larger than now,” he mentioned, including it was unsure that inflation would return to focus on in 2025.
Annual headline inflation was simply 0.61% in September.
