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Gov't Aims To Keep Inflation In Check, BoT In No Rush To Tighten

THB

Spot USD/THB trades flat at THB34.180, with participants assessing local fiscal/monetary rhetoric. Bears would be pleased by a retreat under May 5 low/round figure of THB34.018/34.000. Bulls set their sights on THB34.783, which marks a recent cycle high printed on May 13.

  • PM Prayuth told reporters Monday that the government aims to contain inflation at no more than +5.0% Y/Y by taking measures to east the costs of living.
  • Meanwhile, the Oil Fuel Fund decided to extend the cap on retail diesel prices at THB32/litre for another week to protect consumers.
  • Separately, BoT Gov Sethaput told Bloomberg that the central bank is in no rush to tighten policy, as it doesn't "see the kind of demand-side inflationary pressures in terms of an overheating economy."
  • Thailand's April Customs trade data and industrial output index are expected to be published this week.

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