Bank of Thailand keeps interest rate unchanged

Pace of economic growth remains ‘slow and uneven’, policymakers say

The Bank of Thailand ​kept its key interest ​rate ‌unchanged for a third straight meeting on Wednesday, as widely expected.

The Monetary ⁠Policy Committee (MPC) voted unanimously to maintain the one-day ‌repurchase rate at 1.00%. All but two of 32 economists polled by ⁠Reuters had expected the rate would be unchanged and 17 of 21 economists forecast it would ​remain that way until the end of ​2027.

“The committee views that the current policy rate is appropriate to support economic recovery,” the central bank said in a statement after the meeting. It said the economy this ‌year and next was projected to expand broadly, in line with its previous assessment.

While central banks in South Korea, Indonesia and the Philippines have already raised interest rates, Thailand has kept its policy rate unchanged since a cut in ​February to support the economy amid the fallout from conflict in the Middle East.

The baht was largely unchanged after the decision at 32.71 against the US ‌dollar after the decision was announced.

The central bank cut the policy rate six times, by a total of 150 basis points, between October ⁠2024 and February 2026, to support the sluggish economy, which has been grappling with weak domestic demand and high household debt.

The Thai economy is receiving continued impetus from the technological and artificial intelligence cycle, but growth rates remain low and uneven.

The economy expanded by 1.9% annually in the second quarter of this year, down sharply from 2.8% growth in the previous quarter.

“The Thai economy is receiving continued impetus from the technological and artificial intelligence cycle, but growth rates remain low and uneven,” the MPC statement said.

At its June meeting, the central bank raised its 2026 GDP growth forecast to 2.3% ⁠from 2.0%, and projected export growth of 14% and headline inflation ​of 2.8%.

The economy grew 2.4% last year, lagging regional peers. Thailand’s headline inflation rate slowed to 1.95% in July and was inside the central bank’s target range of 1% to 3%.

The central bank’s next ‌interest rate meeting is ⁠on Oct 28, when it is due ​to provide updated economic forecasts.