THB implications of Thai inflation targeting

The concept of inflation targeting is becoming increasingly popular in Asia. The latest convert is the Bank of Thailand (BOT) which has unveiled details of its move to formal inflation targeting. It will target a core rate of inflation and have a target band which for the 2000-2002 period will be 0.0-3.5%, and may be subsequently revised. The BOT also formalized its main interest rate tool as the 14 day repurchase rate, which currently measures 1.5%.