According to government spokeswoman Traisuree Traisoranakul, the Thai cabinet adopted the central bank’s headline inflation target of 1% to 3% for 2023 on Tuesday, which is unchanged from this year.
Every year, the inflation target, which directs monetary policy, is reassessed.
Headline inflation in November was 5.55%, far above the Bank of Thailand’s target range, indicating that the BOT will keep raising its benchmark interest rate to reduce pricing pressures.
The central bank says that the average rate of inflation will be 6.3% this year and 3.0% next year.
Since August, the benchmark rate has increased by a total of 75 basis points to 1.25%, and economists anticipate another rate increase at the next meeting on January 25.