Thailand Holds Rate at 1% for Fourth Meeting

The Bank of Thailand unanimously held its benchmark rate at 1% for a fourth consecutive meeting, keeping policy accommodative to support a fragile recovery. It raised its growth forecasts to 2.4% for 2026 and 2.1% for 2027, but said expansion remains below potential as high household debt and weak purchasing power weigh on domestic demand. Policymakers are monitoring temporarily higher inflation, driven in part by energy costs and supply-side pressures, as well as risks from Middle East uncertainty and potential cost pass-through.