The Bank of Thailand left its key interest rate unchanged at 1% on Wednesday, marking a second consecutive hold as policymakers opted for stability amid a sluggish domestic recovery and high household debt levels.
The decision was unanimous, with the monetary policy committee voting to maintain the one-day repurchase rate. The outcome aligned with expectations, as all 28 economists in a Reuters poll had forecast no change, while most expected rates to remain steady through 2026.
Market expectations had already tilted heavily towards a prolonged pause, with 23 of 27 respondents projecting no move in the policy rate for the rest of the year. A smaller group saw limited divergence, with three anticipating at least one 25 basis point hike by end-2026 and one forecasting a cut.
Thailand’s central bank has already eased policy significantly in recent cycles, delivering six rate cuts between October 2024 and February this year, totalling 150 basis points. The moves were aimed at supporting Southeast Asia’s second-largest economy as it continues to face weak domestic demand and elevated household debt pressures.
With Wednesday’s decision, the central bank signals a continued wait-and-see stance as it assesses whether earlier rate cuts are filtering through into broader economic activity.
Reuters
