Prasarn dismisses threat of deflation as headline rate goes negative
No need to worry, Thai governor writes in letter to finance minister
Bank of Thailand (BoT) governor Prasarn Trairatvorakul has brushed off suggestions the country's economy is on the cusp of deflation after annual inflation fell below zero in January.
Inflation has fallen some way below the central bank's target of 2.5% (+/- 1.5%). However, in a letter to Thailand's finance minister, Prasarn dismissed concerns about the "risks of potential deflation", claiming expectations were well-anchored.
Thailand's headline inflation rate has declined sharply in recent
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