Bank of Thailand Says Inflation Targeting Maintained for 2016

PRACHUAB KHIRI KHAN, Dec 20 (TNA) - Bank of Thailand (BoT) governor Veerathai Santiprabhob said on Sunday that an inflation targeting would be maintained but the process would be improved so that it could become more efficient in 2016. Mr. Veerathai said during a speech given on a ‘BoT Press Trip’ in the upper southern province of Prachuab Khiri Khan that inflation in Thailand is presently flexible while the risk for high inflation is still low, enabling BoT to oversee other issues such as economic growth. Inflation targeting for 2016 is now awaiting a cabinet discussion and the inflation would focus on medium rather than short-term, he said. The BoT is trying to let commercial banks to play more roles in overseeing monetary policy and making it more efficient, said Mr. Veerathai. Presently, inflation in the country is still low due to declining oil prices but it could turnaround to positive during the first half of 2016 when oil prices increased, said Mr. Veerathai, adding that the BoT has the responsibility to ensure that inflation targeting is efficient as planned. Thailand’s economy is expected to recover gradually in 2016 while there are several risk factors, he said, these risk factors include economic growths of Thailand’s trading partners such as China and other Asian countries fall lower than earlier projections. These negative factors would depress Thailand’s exports while prices of agricultural products are still falling due to declining oil prices, he added. (TNA)