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Thailand’s central bank holds key rate

The Bank of Thailand's monetary policy committee voted unanimously to maintain the one-day repurchase rate at 1.00%, the lowest level in more than three years. It had cut the rate at its February meeting.

The Bank of Thailand had cut the rate at its previous meeting in February. (Photo: BLOOMBERG)
The Bank of Thailand had cut the rate at its previous meeting in February. (Photo: BLOOMBERG)

Bangkok (VNA) - Thailand's central bank has kept its key interest rate unchanged at a recent review, as expected, saying it needed to assess the impact of higher oil prices driven by war in the Middle East.

The Bank of Thailand's monetary policy committee voted unanimously to maintain the one-day repurchase rate at 1.00%, the lowest level in more than three years. It had cut the rate at its February meeting.

Six cuts between October 2024 and February had reduced Thailand's key rate by a total of 150 basis points as authorities sought to energise Southeast Asia's second-largest economy.

The bank said it expected economic growth to reach 1.5% this year, down from a projection of 1.9% made in February, before recovering to 2.0% in 2027.

It said the downturn is directly affecting businesses by raising costs and weakening household purchasing power.

The bank adjusted its headline inflation forecast for the year to an average of 2.9%, up from a projection of 0.3% made in December, driven by the surge in global energy prices.

Inflation is set to accelerate through 2026, and is expected to moderate in 2027 as supply-side pressures subside, it said./.

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