BANGKOK: Thailand’s Cabinet on Tuesday (Dec 27) approved the central bank’s headline inflation target of 1 per cent to 3 per cent for 2023, unchanged from this year, government spokesperson Traisuree Traisoranakul told reporters.
The inflation target, which guides monetary policy, is reviewed each year.
Headline inflation stood at 5.55 per cent in November, far above the Bank of Thailand’s target range, suggesting the BOT will continue to raise its key interest rate to curb price pressures.
The central bank forecast average headline inflation of 6.3 per cent this year before easing to 3.0 per cent next year.
It has raised the benchmark rate by a total 75 basis points since August to 1.25 per cent, and economists expected a further rate hike at the next meeting on Jan 25.
