Thai chief sees no big policy framework change after Fed policy shift

BANGKOK, Aug 28 (Reuters) - Thailand’s central bank does not expect a big change in the country’s already flexible inflation targeting framework after the U.S. Federal Reserve’s recent landmark policy shift, the governor said on Friday.

However, the Fed’s sweeping change of its approach to its dual role of achieving maximum employment and stable price could cause financial market volatility, Veerathai Santiprabhob told Reuters.

“I don’t think that our policy framework will require a significant change for now because the flexible inflation targeting framework has allowed room for us to be flexible enough to deal with multiple objectives,” he said.

The Bank of Thailand targets headline inflation in a range of 1%-3%.

Speaking at the Fed’s Jackson Hole symposium, Chair Jerome Powell said the central bank will seek to achieve 2% inflation on average, so that periods of super-low inflation would likely be followed by an effort to lift inflation “moderately above 2% for some time,” and to ensure economic recovery and job creation. (Reporting by Matthew Tostevin and Orathai Sriring Editing by Ed Davies)