© Reuters. FILE PHOTO: Vendors wearing face masks sell vegetables at a market amid the spread of the coronavirus disease (COVID-19) in Bangkok, Thailand, November 16, 2021. REUTERS/Athit Perawongmetha
BANGKOK (Reuters) – Thailand’s cabinet on Tuesday approved the central bank’s headline inflation target of 1% to 3% 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% 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% this year before easing to 3.0% next year.
It has raised the benchmark rate by a total 75 basis points since August to 1.25%, and economists expected a further rate hike at the next meeting on Jan. 25.