The Bank of Thailand's Monetary Policy Committee voted unanimously to hold the 1-day bilateral repurchase rate at 1.00% at its August meeting on Wednesday, extending the pause in the country's policy cycle to a third consecutive meeting. The decision was communicated in the central bank's statement published on its website.
The rate has been at 1.00% since the committee's last cut in February 2026. The committee judged the current rate appropriate to support the economic recovery, while monitoring inflation risks from supply-side factors and geopolitical developments in the Middle East.
THIRD STRAIGHT HOLD
August marks the third consecutive meeting at which the committee has kept policy unchanged, following holds in April and June.
The committee said the economy is projected to expand broadly in line with its previous assessment, with merchandise exports and private investment growing faster than expected on technology and AI-related momentum, although overall growth remains low and uneven.
1.00% BENCHMARK REMAINS
The Bank of Thailand has kept its benchmark 1-day bilateral repurchase rate at 1.00% for three successive meetings. Headline inflation is projected to be lower than previously assessed, but is expected to rise through the first quarter of 2027 owing to El Niño effects before returning to low levels.
The committee said SME loan contraction, vulnerable household debt, uncertainty from the Middle East conflict and trade protectionist measures warrant close monitoring.
Wednesday's decision was released with the accompanying statement setting out the committee's assessment of the economic and financial conditions on which the outcome was based.
Bank news that matters, every weekday.
Follow The Global Banker on LinkedIn