Price stability
The main objective of the Bank of Thailand (BoT) is to ensure price stability in the economy, which is defined as low and stable inflation. Price stability helps facilitate decision-making and planning of consumption, production, saving and investment by the private sector, which in turn supports sustainable economic growth and employment in the long run. This is because low and stable inflation helps
- Preserve the purchasing power of consumers and savers
- Maintain price competitiveness of businesses in both domestic and international markets
- Reduce volatility of the real interest rate
- Promote a good overall economic environment through reduced uncertainty, which would otherwise negatively affect private-sector consumption and investment planning and decision-making