Thai government pushes for higher inflation range ahead of BOT meeting By Reuters

BANGKOK (Reuters) – Thailand’s inflation target should work to push inflation above 1 percent, Finance Minister Pichai Chunhawajira said on Tuesday ahead of a meeting with the central bank governor where he hopes to reach agreement on a new target range.

Pichai and Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput, along with officials, are due to meet on Tuesday to discuss the inflation target.

The government has been pushing for a higher inflation target than the current range of 1% to 3% to boost the sluggish economy, while the central bank insists the target, which is in place from 2020, has worked well for the economy.

Before the meeting, Deputy Finance Minister Paopoom Rojanasakul said inflation was too low and the target range should be higher.

In the January-September period, average annual headline inflation was 0.20%, well below the target range.

Earlier this month, the BOT unexpectedly cut its key interest rate by 25 basis points to 2.25%, the first cut since 2020 in October.

The government had been pushing all year for a cut, saying interest rates had hampered activity. The central bank responded that structural problems were weighing on growth.

Pichai and Setaput met earlier this month in a meeting that lasted nearly two hours, in which Pichai said they discussed debt and liquidity issues.

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