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 term are unlikely.

2026-08-26

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 term are unlikely.