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BANGKOK (Reuters) - Thailand's government still wants to see a higher inflation target that will push up prices, the finance minister said on Thursday after the central bank's surprise interest rate cut a day earlier.
Wednesday's rate reduction will help increase liquidity and confidence, Pichai Chunhavajira told reporters.
The central bank unexpectedly cut its key rate by 25 basis points to 2.25%, the first reduction since 2020, following repeated calls by the government to ease policy to help revive Southeast Asia's second-largest economy.
The central bank should consider the trend of interest rates in other countries when next deciding rates, Pichai said.
However, Pichai said a higher inflation target for 2025 would be desirable as he planned to discuss the current inflation target of 1% to 3% with the central bank this month.
"A higher inflation target will help increase inflation because this year it's clear that inflation has not reached the target yet," he said.
"We want to see inflation higher than now," he said, adding it was uncertain that inflation would return to target in 2025.
Annual headline inflation was just 0.61% in September.
(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by John Mair)
