Bank of Thailand Keeps Policy Rate Steady to Support Economic Recovery

The Bank of Thailand (BoT) has decided to maintain its accommodative monetary policy stance to sustain the country’s fragile economic recovery, according to the minutes of its October 8 policy meeting released Wednesday. The Monetary Policy Committee (MPC) unexpectedly voted 5-2 to keep the one-day repurchase rate unchanged at 1.50%, highlighting the importance of timing and policy effectiveness amid limited room for further easing.

The minutes revealed that most members agreed the effects of previous rate cuts were still filtering through the economy. Policymakers emphasized the need to assess ongoing measures before making additional adjustments. “Most members placed importance on the timing and effectiveness of monetary policy given the limited policy space and therefore voted to maintain the policy rate at this meeting,” the report stated.

Over the past year, the BoT has reduced its key interest rate four times to stimulate growth in Southeast Asia’s second-largest economy. Thailand continues to face challenges such as high household debt, global trade tensions—particularly U.S. tariffs—and a strong baht that hampers exports and tourism competitiveness.

The central bank forecasts economic growth of 2.2% in 2025 and 1.6% in 2026, compared to 2.5% last year, which already lagged behind regional peers. Newly appointed Governor Vitai Ratanakorn, who assumed office in early October, has reiterated the bank’s readiness to further cut interest rates if inflation remains subdued and growth fails to pick up momentum.

The next monetary policy review is scheduled for December 17, where analysts anticipate the possibility of another rate reduction should economic indicators show continued weakness. The BoT remains committed to using all available tools to ensure stable inflation and foster a sustainable economic recovery amid global uncertainties.