* Says inflation seen back to target in Q2 next year
* 2020 headline inflation seen -1.7% vs 1% -3% target
* Policy rate cut three times this year to record 0.5%.
BANGKOK, July 17 (Reuters) – Thailands financial policy.
need to stay accommodative for a long time to support Southeast.
Asias worst carrying out economy through the coronavirus pandemic.
and help inflation go back to target, the central bank stated.
The Monetary Policy Committee anticipates headline inflation -.
forecasted at minus 1.7% this year – to return to the 1% -3%.
target variety in the 2nd quarter of 2021, the Bank of Thailand.
( BOT) stated in an open letter to the financing minister dated July.
8 and launched late on Thursday.
Over the next 12 months, average inflation was forecasted at.
minus 0.9%, the BOT said, adding supply-side pressures would.
stay low as a sluggish global financial recovery continued to weigh.
on world energy rates.
” The accommodative monetary policy should be kept for.
some duration of time to strengthen the economic healing and.
domestic buying power after the COVID-19 spread is under.
control,” it stated.
Such a policy will likewise facilitate the return of heading.
inflation to target and decrease monetary stability threats.
coming from liquidity problems and the degrading debt.
servicing capability of families and services, the BOT said.
The BOT has cut the policy rate three times.
this year to a record low of 0.50%. It will next review policy.
on Aug. 5.
The BOT has anticipated Southeast Asias second-largest economy.
will shrink by a record 8.1% this year as the break out batters.
crucial tourism and domestic activity.
On Tuesday, the BOT said economic activity may not return.
to levels seen prior to the pandemic till 2022, however the policy.
rate was not likely to go to no percent.
Thailand has recorded no domestic virus transmissions for 52.
Days, however has not permitted foreign tourists to return.
For the complete letter, click https://www.bot.or.th/English/MonetaryPolicy/openLetter/OpenLetter_July2020.pdf.
( Reporting by Orathai Sriring.
Modifying by Ed Davies).
This material was initially published here.