BoT Sees Gradual MonPol Normalisation As Appropriate But Stands Ready To Make Adjustments

The Bank of Thailand still considers gradual monetary policy normalisation to be an appropriate course of action, Governor Sethaput Suthiwartnaruepu said in a letter dated April 7 and addressed to Finance Minister Arkhom Termpittayapaisith.

• "Under the monetary policy mandate of price stability, sustainable economic growth, and financial stability, the MPC viewed that the gradual and measured monetary policy normalization was still appropriate against the broad contour of the Thai economic recovery being on track with some upside risks to inflation from demand-pull inflationary pressures."
• "However, the MPC would stand ready to adjust the size and timing of policy normalization should the growth and inflation outlook shift from the current assessment. The MPC also supported the continuity of debt restructuring programs while asserting the importance of having in place other targeted and sustainable debt resolution measures for vulnerable groups."
• "According to the latest Memorandum of Understanding between the MPC and the Minister of Finance, the MPC will write an open letter to the Minister of Finance again six months from now, should average headline inflation over the past 12 months or a forecast of average headline inflation in the next 12 months at that time breach the monetary policy target."
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