Bank of Thailand expects a mild impact on inflation if the minimum wage hike is raised to Bt300 as campaigned by the Pheu Thai government, on anticipation that the increase would be gradual.
Mathee Supapongse, senior director of the Domestic Economy Department Mathee, admitted that the one-time increase in the wage nationwide would spark a huge impact on inflation. Still, he said that the increase is pending on negotiation with all parties involved including employers.
On some Pheu Thai members’ suggestion that the central bank should keep interest rates low, he said that it is also the central bank’s duty to control inflation in the level that matches the long-term economic expansion.
Source: The Nation