Cabinet turns down new inflation target
Play
The Cabinet today turned down the proposed new inflation target, which may result in a delay in implementation.
The new target proposes that inflation would be 3 per cent, plus or minus 1.5 percentage points. It is supposed to be enforced in 2012, to replace the existing target of 0.5-3 per cent.
"The Cabinet was concerned that the new target may generate a misperception that the government raises the target, as the existing target ranges 0.5-3 per cent against a single digit under the new one," said Finance Minister Thirachai Phuvanatnaranubala.
The Cabinet has assigned the Finance Ministry and the Bank of Thailand to re-consider the new target. If it could not be re-submitted to the Cabinet within this year, the existing inflation target would be enforced.
