Thai Finance Minister Says Still Wants Higher Inflation Target After Rate Cut

FILE PHOTO: Thailand’s newly appointed Finance Minister and Deputy Prime Minister Pichai Chunhavajira looks on, on the day of the cabinet meeting at Thai Government House in Bangkok, Thailand, May 7, 2024. REUTERS/Chalinee Thirasupa/ File Photo

BANGKOK (Reuters) – Thailand’s government still wants to see a higher inflation target that will push up prices, the finance minister said on Thursday after the central bank’s surprise interest rate cut a day earlier.

Wednesday’s rate reduction will help increase liquidity and confidence, Pichai Chunhavajira told reporters.

The central bank unexpectedly cut its key rate by 25 basis points to 2.25%, the first reduction since 2020, following repeated calls by the government to ease policy to help revive Southeast Asia’s second-largest economy.