Bloomberg News

Bank of Thailand May Change Inflation Targets, Prasarn Says

October 04, 2011

Oct. 4 (Bloomberg) -- Thailand’s central bank may change the way it sets inflation targets next year to provide “better communication” of its policies, Bank of Thailand Governor Prasarn Trairatvorakul said.

The central bank may start using headline inflation to guide monetary policy rather than core inflation, which excludes fresh food and fuel prices, Prasarn said at a media briefing today in Bangkok.

“Our target is 3 percent with a tolerance band of 1.5 percent,” Prasarn said, adding that the proposal will be submitted to the finance ministry for approval. “The 3 percent is in line with our long term inflation trend.”

Thailand’s inflation eased to a 6-month low in September as fuel prices slid. Monetary policy will “look into long term inflation, not short term,” Prasarn said today.

--Editor: Tony Jordan

To contact the reporter on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net

To contact the editor responsible for this story: Tony Jordan at tjordan3@bloomberg.net


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