Thai central bank says monetary policy normalization to be gradual, measured

0 Comment(s)Print E-mail Xinhua, February 8, 2023
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BANGKOK, Feb. 8 (Xinhua) -- Thailand's monetary policy normalization will be gradual and measured, and can be adjusted if necessary, according to the central bank minutes released on Wednesday.

The Bank of Thailand (BOT) expected the monetary policy to face challenges ahead because of a tradeoff between tackling inflation amid rising demand-side inflationary pressures on the back of an improving economic outlook and supporting economic recovery where some businesses and households remained fragile, according to the minutes of a monetary policy committee meeting last month.

The committee judged that "gradual and measured policy normalization was an appropriate course for monetary policy while standing ready to adjust the size and timing of policy normalization should the growth and inflation outlook shift from the current assessment," it said.

The central bank expected the Southeast Asian country's economic recovery to continue, helped by tourism and private consumption gaining traction thanks to the return of Chinese tourists, according to the minutes.

The BOT also predicted the headline inflation would continue to decline, however, it said the core inflation might remain high for some time before gradually decreasing, warning that the core inflation could stay high for longer than expected, according to the minutes.

Last month, the BOT monetary policy committee voted unanimously to raise the policy rate from 1.25 to 1.50 percent to tame inflation. Enditem

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