Bank of Thailand Maintains Interest Rates Amid Flood Concerns
Bank of Thailand Governor Vitai Ratanakorn announced the central bank is in no rush to raise interest rates as structural issues hinder economic growth.
Vitai Ratanakorn, Governor of the Bank of Thailand, announced on October 8 that the central bank is in no rush to raise interest rates. He stated that monetary policy cannot address the structural issues currently hindering economic growth.
The Bank of Thailand maintained its key interest rate at 1.00 per cent in August, with the next review scheduled for October 28. Ratanakorn projected economic growth of approximately 2.3 per cent for the year, supported by investment and expected export growth of 17 to 18 per cent.
However, the governor warned that severe flooding could cause a larger economic hit than initially estimated. The governor of Bangkok recently declared the capital a disaster-affected zone after 300 mm of rain fell within three days. Inflation is expected to slow to around 2 per cent in 2026, which remains within the bank's target range of 1 per cent to 3 per cent.
