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Finance Minister and Central Bank Set Inflation Target of 1-3%

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Agreement on Inflation Framework for 2025

Finance Minister Pichai Chunhavajira and Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput have reached a significant agreement to establish an inflation target of 1% to 3% for the upcoming year. This decision is part of a broader effort to coordinate fiscal and monetary policies effectively and prevent deflation.

Memorandum of Understanding Approved

The memorandum of understanding (MoU) outlining this inflation target was approved by the Cabinet on Tuesday. The MoU emphasizes that maintaining price stability is crucial for the Thai economy and reflects a commitment to collaboration between the government and the central bank.

  • Long-Term Goals: The 1-3% inflation target is set as a medium-term goal, with an eye towards achieving stability in 2025.

Shift in Tone Between Government and BOT

Previous Tensions Addressed

This agreement marks a notable shift in tone between the Finance Ministry and the BOT, especially following previous tensions regarding interest rate policies since the Pheu Thai-led coalition came to power in 2023.

  • Commitment to Coordination: The MoU highlights that both parties will work together to ensure inflation remains within the established framework, avoiding significant deviations either above or below the target.

Flexibility in Economic Framework

Adapting to Economic Conditions

The MoU acknowledges that the inflation framework will be flexible to accommodate the needs of Thailand’s small and open economy. Regular consultations will be held to ensure effective coordination between fiscal measures and monetary policy.

  • Use of Monetary Tools: The BOT plans to utilize various tools, including policy rates and measures aimed at protecting the value of the baht, to maintain the inflation target.
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Preventing Deflation Concerns

Shared Commitment Against Deflation

Both the Finance Ministry and the Monetary Policy Committee (MPC) of the BOT have expressed their determination to prevent prolonged deflation, which could signal economic weakness.

  • Reporting Mechanism: The MPC is tasked with reporting its operations to the government every six months, ensuring transparency and accountability in managing inflationary pressures.

A Unified Approach to Economic Stability

The agreement between Thailand’s Finance Minister and the central bank represents a unified approach towards achieving economic stability through a clear inflation target. By fostering cooperation and maintaining open communication channels, both parties aim to navigate potential economic challenges effectively while safeguarding the interests of consumers and businesses alike.

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Strengthening National Security: New Authority for Supreme Commander

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The Prime Minister has granted the Supreme Commander new authority to tackle transnational threats, marking a significant step in enhancing national security. This initiative aims to bolster efforts against emerging cross-border challenges, including organized crime and cyber threats.

Enhancing Security Measures

Combating Organized Crime

The Supreme Commander’s new authority will focus on combating call center gangs and other forms of transnational crime. This move is part of a broader strategy to strengthen law enforcement capabilities and protect citizens from evolving threats.

Strategic Coordination

International Cooperation

The initiative also involves strategic coordination with international partners to share intelligence and best practices in combating transnational crime. This collaboration is crucial for staying ahead of sophisticated criminal networks that operate across borders.

Technological Advancements

Cybersecurity Enhancements

In addition to traditional crime-fighting methods, the Supreme Commander will leverage advanced technology to enhance cybersecurity. This includes investing in digital tools to monitor and disrupt cyber threats, ensuring the safety of national infrastructure and personal data.

Public Awareness and Engagement

Community Involvement

To maximize the effectiveness of these efforts, there will be a focus on public awareness and community engagement. Educating the public about the risks of transnational crime and encouraging participation in reporting suspicious activities are key components of this strategy.

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Celebrating Five Decades of Thai-Chinese Diplomatic Relations

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Strengthening Cultural Bonds

Cultural Events and Performances

Thailand and China are marking a significant milestone in their diplomatic relations with a grand celebration of their 50-year ties. The event, held at the China Cultural Centre in Bangkok, featured a captivating performance by the renowned Symphony Choir of China. This cultural exchange aimed to deepen the understanding and friendship between the two nations, symbolizing their enduring partnership through music. The celebration highlighted the importance of cultural, economic, and educational exchanges in strengthening their bilateral relations.

Enhancing Bilateral Cooperation

Economic and Cultural Exchanges

The 50th anniversary of Thai-Chinese diplomatic relations is being commemorated with a series of events and activities designed to promote bilateral cooperation. These include cultural performances, exhibitions, and special promotions that reflect the vibrant cultural heritage of both countries. The official logo for the anniversary, featuring a Naga and a Dragon, represents the shared aspirations of Thailand and China towards a community with a shared future, emphasizing stability, prosperity, and sustainability.

Golden Jubilee Celebrations

High-Level Visits and Cultural Activities

This year’s celebrations are particularly significant, with high-level visits planned between the two nations. Chinese Prime Minister Li Qiang is scheduled to visit Thailand, coinciding with the 5th Mekong-Lacang Cooperation Leaders’ Meeting. Additionally, cultural representatives from various Chinese provinces will visit Thailand, further enriching the cultural exchange between the two countries. The Tourism Authority of Thailand is also organizing Chinese New Year celebrations, reflecting the deepening cultural ties and cooperation between Thailand and China.

Strengthening Economic Ties

Bilateral Agreements and Trade

Thailand and China have signed 14 bilateral agreements, reinforcing their cooperation in strategic sectors such as economy, investment, energy, and customs. These agreements aim to enhance trade efficiency, particularly for key agricultural exports like durian, and promote scientific collaboration and technological advancements. The emphasis on strengthening economic ties underscores the commitment of both nations to fostering a prosperous and sustainable partnership.

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Thailand Braces for Severe Weather: Storm Alert Issued

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A storm alert has been issued for Bangkok and surrounding areas, effective from Thursday. This warning comes as a moderate high-pressure system from China is expected to extend over the Northeast and the South China Sea, bringing significant weather changes.

Weather Conditions and Precautions

Understanding the Storm System

The approaching storm system is anticipated to bring thunderstorms, strong winds, and potential hail to upper Thailand. Residents are advised to be cautious of these sudden weather changes, avoiding open areas, tall trees, weak structures, and advertising billboards. Farmers should also take necessary precautions to protect their crops from potential damage.

Preparing for the Storm

The storms are expected to follow a period of intense heat, with temperatures in the Central and Northeast regions possibly reaching 40°C. Southerly and southeasterly winds are currently affecting the lower North, Northeast, Central, and East, leading to isolated thunderstorms and gusty winds. It is crucial for residents to stay indoors during the heatwave and be prepared for the storms by having safety gear ready.

Regional Weather Outlook

Bangkok and Surrounding Areas

Bangkok and its vicinity will experience hot days with isolated thunderstorms. Temperatures are expected to range from 25-28°C to a high of 34-37°C. While the storms may cover only a small portion of the city, residents should remain vigilant and prepared for any weather hazards.

Other Regions

In the southern region, partly cloudy skies with thunderstorms in about 10% of the area are expected. The East will see haze paired with heat, while the South will experience easterly breezes with temperatures fluctuating between 22-36°C. The sea conditions will generally be calm unless thunderstorms occur, which could increase wave heights.

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