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Thailand to keep budget deficit not over 3% of GDP for 2023 fiscal yr – Finance Minister

Thailand to keep budget deficit not over 3% of GDP for 2023 fiscal yr - Finance Minister
© Reuters. FILE PHOTO: Thai baht notes are seen at a Kasikornbank in Bangkok, Thailand, May 12, 2016. REUTERS/Athit Perawongmetha/File Photo

BANGKOK (Reuters) – Thailand’s government is planning to keep its budget deficit to no more than 3% of gross domestic product in the 2023 fiscal year, the finance minister said on Tuesday, aiming for a deficit of 593 billion baht ($17.13 billion).

Arkhom Termpittayapaisith also said the inflation target range of 1% to 3% was appropriate and monetary policy would ensure continued recovery of the economy.

The inflation target will help maintain price stability and keep medium-term inflation expectations anchored, he told a news conference.

Headline inflation was 5.55% in November, far above the Bank of Thailand’s target range, but Arkhom said it would gradually fall back to within the target in 2023.

The country’s public debt was expected at 61.35% of GDP at the end of the 2023 fiscal year starting Oct. 1, he said.

The central bank recently it would continue to gradually raise its key interest rate for a while until the economy grew at its full potential and inflation returned to target.

It has raised the benchmark rate by a total 75 basis points since August to 1.25%, and economists expected a further rate hike next month.

($1 = 34.62 baht)

Source: Investing.com

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