BOT:Energy prices will not obstruct national economic recovery

BANGKOK, December 3 (TNA) - The Bank of Thailand (BOT) foresees that inflation should be down for 1-2 years and low global oil prices should not obstruct the national economic recovery next year. BOT Spokesman Jirathep Seniwong na Ayutthaya told journalists on Wednesday that inflation should be slowing over the next 1-2 years and the global oil prices should remain low until the first quarter of next year because the Organization of Petroleum Exporting Countries (OPEC) would not cut their oil production, aimed to maintain the low oil prices to stop the United States from producing oil with a new and more expensive technology. Besides, the Thai government is restructuring energy prices and the Thai economy should, thus, grow better than it is this year. The spokesman explained that energy prices would neither block national economic recovery nor cause deflation because, despite low oil prices, local oil use would not fall, accounting for 12 per cent of the country's gross domestic product (GDP). The spokesman pointed out that lower energy prices would also improve Thailand's balance of trade and cut business and people's costs of living. According to the spokesman, the central bank is seeking the government's approval of its policy change to base its monetary policies on headline inflation, instead of core inflation which is attached to the prices of oil and fresh food but does not include other factors, in order to better reflect people’s costs of living. (TNA)