IMF BACKS BANK OF THAILAND’S POLICY STANCE

BANGKOK, Thailand The International Monetary Fund (IMF) supports Bank of Thailand's stated stance, saying monetary easing could help bring inflation back within the targeted range this year as the country's economic recovery gains momentum but struggles to become broad-based, the Bangkok Post reported.

"A number of directors agreed that monetary easing, within a broader expansionary policy mix, could help steer inflation back to target, with macroprudential policy used to address financial stability concerns," the IMF executive board said after its Article IV consultation with Thailand.

"A number of other directors considered the current monetary stance to be sufficiently accommodative, and that monetary policy should balance support for inflation against financial stability risks."

Headline inflation averaged 0.7 per cent in 2017, below the central bank's one to four per cent target band for the third year in a row, reflecting low food prices and weak core inflation.

Thailand's headline inflation in May registered 1.49 per cent on an annual basis, the highest level in 16 months.

Source: NAM News Network