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Current inflation target appropriate

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By Imad Uddin
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BANGKOK: Thailand's current inflation target range of 0.5-3.0 percent, which is used to guide monetary policy, is still appropriate, the central bank governor said on Wednesday, rebuffing the government suggestions to narrow it.

Raising the upper band might send a wrong signal to the markets, meaning that inflation would be allowed to go higher, Bank of Thailand Governor Prasarn Trairatvorakul told reporters.

His comments came after Finance Minister Thirachai Phuvanatnaranubala said he wanted a narrower inflation target range.

 

Copyright Reuters, 2011

 

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