Bank of Thailand (BoT) kept its benchmark interest rate unchanged at one point five zero percent on Wednesday, surprising markets that had anticipated another rate cut amid mounting economic pressures. The central bank, however, signaled it remains open to further easing should the outlook for Thailand’s economy worsen. This comes as the nation grapples with negative inflation, weak domestic demand, and the impact of United States tariffs on trade.
The BoT’s monetary policy committee voted five to two to maintain the one-day repurchase rate, noting that the effects of previous rate cuts are still working their way through the economy. The bank slightly reduced its growth forecast to two point two percent for twenty twenty-five and one point six percent for twenty twenty-six, citing external headwinds and softening domestic momentum. Inflation remains below target at zero percent this year, but officials maintain that the risk of deflation is low.
The central bank expects exports to grow by ten percent this year, despite trade frictions, but projects a contraction in twenty twenty-six. Meanwhile, the government has announced a forty-four billion baht stimulus plan to bolster consumption and investment. Economists anticipate two more rate cuts in the coming months to support growth.
