Thailand Central Bank Retains Key Rate

(RTTNews) - The Bank of Thailand left its key interest rate unchanged for the fourth straight meeting on Wednesday.

The Monetary Policy Committee of the Bank of Thailand unanimously decided to hold the policy rate at 1.00 percent. The decision matched expectations.

The bank has reduced the rate by 150 basis points since October 2024.

"Under the prevailing monetary policy framework, which aims to maintain price stability, support sustainable economic growth, and preserve financial stability, the Committee views that the current policy rate is appropriate to support economic recovery," the bank said in a statement.

Headline inflation is projected to average 2.1 percent in 2026 and 1.3 percent in 2027. Driven by energy prices and the effects of El Nino, inflation is forecast to rise through the remainder of this year and into early 2027.

Core inflation is expected to average 1.2 percent in 2026 and 1.3 percent in 2027.

The bank forecast the Thai economy to grow 2.4 percent this year and 2.1 percent next year, underpinned by stronger-than-expected momentum in exports and private investment.