February 15, 2022: -Inflation in Thailand will essentially be “contained” because the price pressures in the country are not as broad-based compared to some developed markets, said the governor of the Thai central bank.
Sethaput Suthiwartnarueput said the overall inflation rate would remain within the central bank’s target range of 1% and 3%.
Even though inflation for January came in at 3.2%, “we still think that it’s likely to be contained and that we’re not likely to see the kind of high inflation rates that we’ve seen in developed country markets,” the governor told CNBC on Monday.
The main reason is that inflation pressures are mainly concentrated in areas such as the “energy space and with certain kinds of important food prices, like pork,” he explained.
On Wednesday, the Thai central bank kept its key interest rate unchanged at a record low of 0.5% and said the economy would continue to recover in a statement. The fast-spreading omicron variant “would exert limited pressure on the public health system.”
“In the period ahead, there remained a need to closely monitor developments of global energy prices and domestic goods and services prices, as well as the possibility of growing wage pressures,” the central bank said.
The U.S. Federal Reserve’s expected move to tighten monetary policy would negatively impact Thailand as its external stability remains strong, said Suthiwartnarueput.
“We look quite good. We have very high levels of foreign reserves, low levels of external debt, and our current account is pretty much in the balance,” the governor noted.
The Fed has indicated it could soon raise interest rates for the first time in more than three years as part of a broader tightening of easy monetary policy. Major central banks worldwide slashed interest rates during the worst of the pandemic in a bid to stimulate growth as Covid-19 took a toll, but the Fed has since signaled that it is preparing to raise rates again.
“The kind of stress that comes from the tightening of global financial conditions on that front — I think we have quite a bit of wiggle room relative to other emerging market economies,” he added.
Still, risks remain as the country’s economic recovery remains fragile and uncertain.
The leadership landscape is profoundly changing, influenced by technological advancements, shifting workforce expectations, and the need for adaptability in an unpredictable global environment.
In the fast-paced business world, corporate leaders often find themselves at the crossroads of risk and reward, where bold decisions …
Corporate leaders often navigate turbulent waters where failure is not just a possibility but an inevitable part of the journey …
Corporate leaders play a pivotal role in shaping organizational cultures that embrace diversity and foster inclusivity. How can these …
Corporate leaders occupy a unique vantage point in the business world, offering insights and guidance shaped by their …
Corporate leaders today stand at the nexus of unprecedented technological evolution, where digital transformation reshapes industries and redefines …
The EU Green Deal is accelerating corporate sustainability efforts across industries, prompting significant leadership and strategic priorities shifts.
Morningstar has highlighted a compelling investment opportunity within the utility sector: midcap utilities.
Panera Brands announced on Tuesday that José Alberto Dueñas, the company’s Chief Executive Officer, has stepped down from his position, effective immediately
Microsoft has announced plans to significantly increase its investments in AI-enabled data center infrastructure, with projected expenditures exceeding $80 billion in fiscal 2025.
Leave us a message
Subscribe
Fill the form our team will contact you
Advertise with us
Fill the form our team will contact you
