BANGKOK (Reuters) – Thailand’s government is planning to maintain its budget deficit to not more than 3% of gross domestic product within the 2024 fiscal yr, the finance minister said on Tuesday, aiming for a deficit of 593 billion baht ($17.13 billion).
Arkhom Termpittayapaisith also said the inflation goal range of 1% to three% was appropriate and monetary policy would ensure continued recovery of the economy.
The inflation goal will help maintain price stability and keep medium-term inflation expectations anchored, he told a news conference.
Headline inflation was 5.55% in November, far above the Bank of Thailand’s goal range, but Arkhom said it might steadily fall back to inside the goal in 2023.
The country’s public debt was expected at 61.35% of GDP at the top of the 2024 fiscal yr starting Oct. 1, he said.
The central bank recently it might proceed to steadily raise its key rate of interest for some time until the economy grew at its full potential and inflation returned to focus on.
It has raised the benchmark rate by a complete 75 basis points since August to 1.25%, and economists expected an extra rate hike next month.
(This story has been corrected to alter the yr to 2024, not 2023, within the headline, and paragraphs 1 and 5)
(Reporting by Orathai Sriring and Kitiphong Thaichareon; Editing by Martin Petty)
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