Central bank maintains policy rate at 1.00 percent

The Monetary Policy Committee (MPC) of the Bank of Thailand voted unanimously today to maintain the benchmark policy rate at 1.00%.

Don Nakornthab, secretary of the MPC, said that the committee concurred that an accommodative monetary policy has helped support economic recovery at a time when overall growth remains low and uneven, while inflation, although projected to be lower than previously assessed, is expected to rise throughout the remainder of the year and SME loans continue to contract.

As such, the committee decided to maintain the policy rate and will monitor the situation in the Middle East, trade protectionist measures and risks to inflation closely, said Don.

According to the committee, the Thai economy in 2026 and 2027 is projected to expand broadly in line with the previous assessment. Exports and private investment have expanded faster than expected.

Private consumption has increased more slowly than anticipated, while households remain cautious in their spending amid a rising cost of living.

Under the prevailing monetary policy framework, the committee views that the current policy rate as being appropriate to support economic recovery, said Don.