The Bank of Thailand (BoT) may revise its forecast for Thailand’s inflation rate and economy for 2022 next month, although the headline inflation rate is expected to remain within its target range.
According to BoT’s senior director of the Economic and Policy Department Sakkapop Panyanukul, inflation for the first half of the year is predicted to exceed the BoT’s anticipated range of 1-3 percent. However, the number is likely to fall in the second half of 2022, keeping the headline inflation rate within its forecast. He noted that most economic indicators have been in line with the forecasts so far this year, with the exception of an increase in exports and a rise in inflation.
Surach Tanboon, BoT’s senior director of the Monetary Policy Department, stated that the rate of inflation hit a nine-month high of 3.23 percent in January 2022. The increase was caused by rises in fuel and commodity prices, which affected the prices of other products. However, he said that inflation will reduce as a result of lower oil costs and measures to alleviate shortages of semiconductors, containers, and pork.
The BoT also underlined that the US Federal Reserve’s projected interest rate hikes will have little impact on Thailand because its external stability remained solid, with high foreign reserves and little foreign debt.
The BoT stated that it will maintain low-interest rates, roll out measures such as low-interest loan programs or soft loans, and implement long-term initiatives such as the debt clinic program to revitalize the Thai economy. (NNT)
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