FX.co ★ Bank of Thailand Holds Rate for 4th Straight Meeting

The Bank of Thailand left its benchmark interest rate unchanged at 1.00% for a fourth consecutive meeting in October 2026, as widely anticipated, marking its longest period of steady rates in two years. The decision was unanimous, with one committee member absent, as policymakers maintained an accommodative stance to support an uneven economic recovery.

The Thai economy is projected to expand by 2.4% in 2026 and 2.1% in 2027, driven by stronger-than-expected exports and investment tied to the technology and AI upcycle. Nonetheless, growth remains below potential, while elevated household debt and weak purchasing power continue to constrain private consumption.

Headline inflation is expected to average 2.1% in 2026 and 1.3% in 2027, rising temporarily through early 2027 due to higher energy prices and El Niño effects, before easing as domestic demand stays subdued. The central bank cautioned that heightened uncertainty in the Middle East and stronger cost pass-through could push inflation above its current projections.