Thailand keeps inflation target of 1-3% for next year

BANGKOK  – Thailand’s cabinet on Tuesday approved the central bank’s headline inflation target of 1 percent to 3 percent  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 percent  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 percent  this year before easing to 3 percent next year.

It has raised the benchmark rate by a total 75 basis points since August to 1.25 percent , and economists expected a further rate hike at the next meeting on Jan. 25.

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