🇹🇭 Update: Bank of Thailand confirms monetary policy must focus on the medium to long-term outlook!
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📢 What's new?
– The Governor of the Bank of Thailand (BOT) emphasized that monetary policy should adopt a medium-term perspective, even if inflation temporarily declines
– The statement comes amid expectations of inflation falling to 0.8% in 2025, while maintaining interest rates at 2.25%
– Focus remains on long-term price stability, with monitoring of external volatility risks
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💡 Analysis:
– Reflects caution against a rapid interest rate cut, despite economic pressures and sluggish growth
– Supports the stability of the Thai baht, avoiding short-term reactions to low inflation data
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⚡ Why should you care?
– Enhances stability in emerging markets, impacting regional investments and Asian currencies
– A lesson for global central banks on balancing growth and inflation
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❓Do you think a medium-term outlook will protect Thailand from a potential recession?
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