Bank of Thailand Holds Policy Rate at 1.00% for Fourth Straight Meeting

Thailand's central bank kept its key interest rate unchanged for a fourth consecutive meeting on Wednesday, unanimously holding the one-day repurchase rate at 1.00% as all 26 economists polled by Reuters had expected. The Bank of Thailand's monetary policy committee said the current rate is "appropriate to support economic recovery," noting inflation has risen temporarily on supply-side factors while pledging to monitor the outlook and the effects of low rates on long-term macro-financial stability. The central bank raised its 2026 growth forecast to 2.4% from 2.3% and lifted its 2027 projection to 2.1% from 1.8%, though it said growth remains below potential. The economy expanded 1.9% annually in the second quarter, down from 2.8% in the prior quarter. Headline inflation quickened to 2.82% in September, within the 1% to 3% target range. The central bank now forecasts inflation at 2.1% this year and 1.3% in 2027. The baht was largely unchanged after the decision. The next rate meeting is on December 23.