INFLATION
BoT commits to targeting framework
- Published: 18 Aug 2012 at 00.00
- Newspaper section: Business
The Bank of Thailand's concept of targeting inflation using interest rates remains the most suitable framework for the country, says Prasarn Trairatvorakul, the central bank governor.
The existing managed floating foreign exchange rate has allowed the central bank flexibility to administer interest rates and foreign exchange policies that ensure economic stability without undermining growth.
The 12-year-old inflation targeting framework, which gives the central bank credibility in anchoring inflation expectations, has come under fire from central bank chairman Virabongsa Ramangkura, who proposed the central bank shift to using foreign exchange as the key tool to control inflation.
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