BoT Releases Minutes From March MonPol Meeting

The Bank of Thailand publishes the edited minutes from its March monetary policy meeting:

• "The Thai economy would continue to recover, expanding by 3.2 percent in 2022 and 4.4 percent in 2023. The effects of sanctions against Russia would not derail the overall economic recovery path."
• "Downside risks to short-term growth increased. First, there could be prolonged shortages of raw materials in certain industries Second, households and businesses could be affected by higher living costs and higher production costs, particularly the vulnerable groups."
• "Furthermore, the ability of businesses in certain sectors to absorb rising costs had diminished, particularly those with large shares of fuel and commodities in their cost structure, including transportation, petroleum and chemicals, and construction."
• "Headline inflation for the full year 2022 was expected to exceed the target range, reaching4.9 percent, driven primarily by rising energy prices and the pass-through of food prices. Headline inflation in 2023 was expected to decrease to 1.7 percent and return to the target range."
• "Overall, the Committee assessed that the rise in inflation was mainly due to cost-push price pressures. Demand pull inflationary pressures remained subdued given that income had just begun to recover. Medium-term inflation expectations remained anchored within the target range."
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