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THAILAND: BoT Says Inflation Should Return To Target By End-2024

THAILAND

The statement from the BoT's monetary policy meeting, which resulted in a 6-1 vote in favour of unchanged interest rates, notes that "the Thai economy is projected to expand as anticipated, driven by tourism and domestic demand, while overall exports are gradually recovering. Inflation is expected to return to the target range by the end of 2024."

  • "One member voted to cut the policy rate by 0.25 percentage point to reflect Thailand’s lower potential growth as a result of structural challenges, and to partly alleviate debt-servicing burden for borrowers."
  • "Medium-term inflation expectations remain consistent with the target, and headline inflation is anticipated to gradually return to the target range by the end of 2024. However, there is a need to monitor potential extensions of government price subsidies."
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The statement from the BoT's monetary policy meeting, which resulted in a 6-1 vote in favour of unchanged interest rates, notes that "the Thai economy is projected to expand as anticipated, driven by tourism and domestic demand, while overall exports are gradually recovering. Inflation is expected to return to the target range by the end of 2024."

  • "One member voted to cut the policy rate by 0.25 percentage point to reflect Thailand’s lower potential growth as a result of structural challenges, and to partly alleviate debt-servicing burden for borrowers."
  • "Medium-term inflation expectations remain consistent with the target, and headline inflation is anticipated to gradually return to the target range by the end of 2024. However, there is a need to monitor potential extensions of government price subsidies."