Thai Finance Minister and central bank to discuss inflation target, PM says
2024.06.21 01:06
BANGKOK (Reuters) – Thailand’s Finance Minister Pichai Chunhavajira will discuss the inflation target with the central bank governor, Prime Minister Srettha Thavisin said on Friday, adding additional stimulus measures would be announced next week.
The government has been at loggerheads with the central bank for months over interest rates, with the prime minister calling for a rate cut to boost Southeast Asia’s second-largest economy.
The Bank of Thailand bank held its key interest rate steady at 2.50% at a review earlier this month. The next rate review is on August 21.
In May, when Pichai assumed office, he said he would review the inflation target of 1% to 3% with the central bank.
The central bank has previously said that interest rates and the inflation target were suitable.
The annual inflation rate in May was 1.54%.
The renewed talks come amid political uncertainty that have rattled markets as courts hear a number of crucial cases, including one calling for the removal of the prime minister.
