Inflation in Thailand will largely be “contained” because the price pressures in the country are not as broad-based compared to some developed markets, said the governor of Bank of Thailand.

Sethaput Suthiwartnarueput said overall inflation rate will remain within the central bank’s target range of between 1% and 3%.

The governor stated that even though January’s inflation was at 3.2%, he still believes that the inflation rate will be contained. He also said that he didn’t expect to see high inflation rates in developing countries markets.

He explained that the main reason for this is because inflation pressures tend to be concentrated in certain areas like “energy space” and with specific types of food prices such as pork.

This Wednesday is the Thai central bank kept its key interest rate unchangedAt a record low 0.5% in a statementEconomy will recover, while the rapidly spreading Omicron variant “would not exert any pressure on public health.”

The central bank stated that “in the future, there will be a need for close monitoring developments in global energy prices as well as domestic goods and service prices as well as growing wage pressures.”

It U.S. Federal Reserve’s expected move to tighten monetary policySuthiwartnarueput said that this would not have any impact on Thailand’s external stability.

“We look quite good. The governor stated that we have high foreign reserves and low external debt, as well as a current balance.

In a wider tightening in easy monetary policies, the Fed suggested that they could raise interest rates soon. In an effort to spur growth after the pandemic, major central banks all over the globe slashed their interest rates. But the Fed now indicates that they are preparing to increase rates once again.

“The kind of stress that comes from the tightening of global financial conditions on that front — I think we have quite a bit of wiggle room relative to other emerging market economies,” he added.

According to the governor, there are still risks as the nation’s recovery from economic recession remains uncertain and fragile.

According to the Thai central bank, the number of foreign tourist arrivals in December — particularly those from Europe — accelerated from the previous month, after seasonal adjustment.

According to it, “Nevertheless the foreign tourist figures remain low due to international travel restrictions that are still in place in many countries,”

According to the governor, the most significant impact of tourism on the country’s employment and wage front is greater.

The employment footprint for tourism sector that is related to our labour force, whether directly or in indirect ways, amounts to close about one fifth. Suthiwartnaruepu explained that it was difficult to predict a revival in tourism.