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head of the central bank on inflation, resumption of tourism

Inflation in Thailand will largely be “restrained” because price pressures in the country are not as wide compared to some developed markets, said the head of the Bank of Thailand.

Sethaput Sutivartnarueput said the overall inflation rate would remain within the central bank’s target range of 1% to 3%.

Although inflation was around 3.2% in January, “we still believe that it is likely to be contained and that we are unlikely to see such high inflation rates as we have seen in developed markets. “- said the governor. told CNBC “Streets Signs Asia” on Monday.

The main reason is that inflationary pressures are concentrated mainly in areas such as “energy space and with some kinds of important food prices like pork,” he explained.

On Wednesday, c The Central Bank of Thailand has kept its key interest rate unchanged at a record low of 0.5%, and said in the statement the economy will continue to recover, and the fast-expanding version of omicron “will put limited pressure on the health care system.”

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“In the future, it remains necessary to closely monitor the development of world energy prices and domestic prices for goods and services, as well as the possibility of increasing pressure on wages,” said the Central Bank.

External stability remains resilient

The The expected step of the US Federal Reserve is to strengthen monetary policy will not affect Thailand as its external stability remains strong, Suthiwartnarueput said.

“We look good. We have a very high level of foreign reserves, low levels of external debt, and our current account is quite balanced,” said the governor.

Without the resumption of tourism, it is very difficult for us to see everything return to normal.

Setaput Sutivartnarueput

Governor of the Bank of Thailand

The Fed said it could soon raise interest rates for the first time in more than three years as part of a broader tightening of monetary policy. Major central banks around the world cut interest rates during the worst pandemic in a bid to boost growth as Covid-19 caused damage, but the Fed has since signaled it is preparing to raise rates again.

“The stress that comes from the tightening global financial environment on this front – I think we have quite a lot of room compared to other emerging market economies,” he added.

However, according to the governor, the risks remain as the country’s economic recovery remains fragile and uncertain.

The resumption of tourism is still uncertain

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“However, the number of foreign tourists remained low as international travel restrictions in many countries remained in place,” the statement said.

Tourism has a more significant impact on wages and employment, the governor said.

“Traces of employment in the tourism sectors, which are directly or indirectly related, are approaching about a fifth of our workforce. Therefore, without the resumption of tourism, it is very difficult for us to see everything return to normal,” said Sutivartnaruepu. .

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head of the central bank on inflation, resumption of tourism

Inflation in Thailand will largely be “restrained” because price pressures in the country are not as wide compared to some developed markets, said the head of the Bank of Thailand.

Sethaput Sutivartnarueput said the overall inflation rate would remain within the central bank’s target range of 1% to 3%.

Although inflation was around 3.2% in January, “we still believe that it is likely to be contained and that we are unlikely to see such high inflation rates as we have seen in developed markets. “- said the governor. told CNBC “Streets Signs Asia” on Monday.

The main reason is that inflationary pressures are concentrated mainly in areas such as “energy space and with some kinds of important food prices like pork,” he explained.

On Wednesday, c The Central Bank of Thailand has kept its key interest rate unchanged at a record low of 0.5%, and said in the statement the economy will continue to recover, and the fast-expanding version of omicron “will put limited pressure on the health care system.”

Igor Bilich | Moment | Getty Images

“In the future, it remains necessary to closely monitor the development of world energy prices and domestic prices for goods and services, as well as the possibility of increasing pressure on wages,” said the Central Bank.

External stability remains resilient

The The expected step of the US Federal Reserve is to strengthen monetary policy will not affect Thailand as its external stability remains strong, Suthiwartnarueput said.

“We look good. We have a very high level of foreign reserves, low levels of external debt, and our current account is quite balanced,” said the governor.

Without the resumption of tourism, it is very difficult for us to see everything return to normal.

Setaput Sutivartnarueput

Governor of the Bank of Thailand

The Fed said it could soon raise interest rates for the first time in more than three years as part of a broader tightening of monetary policy. Major central banks around the world cut interest rates during the worst pandemic in a bid to boost growth as Covid-19 caused damage, but the Fed has since signaled it is preparing to raise rates again.

“The stress that comes from the tightening global financial environment on this front – I think we have quite a lot of room compared to other emerging market economies,” he added.

However, according to the governor, the risks remain as the country’s economic recovery remains fragile and uncertain.

The resumption of tourism is still uncertain

Stock Picks and Investment Trends from CNBC Pro:

“However, the number of foreign tourists remained low as international travel restrictions in many countries remained in place,” the statement said.

Tourism has a more significant impact on wages and employment, the governor said.

“Traces of employment in the tourism sectors, which are directly or indirectly related, are approaching about a fifth of our workforce. Therefore, without the resumption of tourism, it is very difficult for us to see everything return to normal,” said Sutivartnaruepu. .

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