BOT's MPC unanimously voted Wednesday to keep the policy rate at 1.00% for the
third consecutive meeting, in line with market expectations. The bank cited weak
domestic growth and high household debt; despite Middle East-related energy
price shocks, inflation remains within target, reducing near-term pressure to
tighten. Government stimulus has been launched but consumption is weak and Q2
GDP slowed sharply; unless inflation rises materially, further rate hikes in the
near terms are unlikely.
