Bank of Thailand Holds Interest Rate at 1 Per Cent

The Bank of Thailand Monetary Policy Committee voted unanimously on October 28 to keep the benchmark one-day repurchase rate at 1 per cent. This decision marks the fourth consecutive time the central bank has held the rate steady, as the committee believes the current level is appropriate to support economic recovery.

Despite describing the economy as growing below potential, the bank raised its economic growth forecasts to 2.4 per cent for this year and 2.1 per cent for 2027. This upward revision follows a 24 per cent year-on-year increase in September exports, driven by global demand for artificial intelligence and increased investment.

Other economic sectors face continued constraints. The bank noted that high household debt is limiting private consumption, while rising oil prices are expected to cause a decline in foreign tourist arrivals. This policy hold contrasts with recent regional trends, such as a rate hike in the Philippines.