BOT points to growing global risks

He noted that this approach is recommended by such international financial institutions as the International Monetary Fund (IMF), which emphasises controlling inflation within certain limits. Meanwhile, on the fiscal front, efforts are being made to create fiscal buffers by reducing expenditure, increasing revenue, and reducing trade imbalances to prepare for volatile situations.

Increasing risks include the slowing of the real estate sector and the impact of international trade disputes on global trade. While acknowledging that evaluating the impact of these risks is challenging due to the unpredictable repercussions of the events in the Middle East, Sethaput said that they will certainly affect trade and exports to Israel, are likely to push up oil prices and could lead to a resurgence of inflation.

Stressing that fiscal authorities should build fiscal buffers to prepare for…