Thailand Central Bank Retains Rate At 1.50%

(RTTNews) - The Bank of Thailand maintained its interest rate on Wednesday citing the limited policy space. The Monetary Policy Committee voted 5- 2 to hold the policy rate at 1.50 percent. The decision matched economists' expectations.

Two members sought a 0.25 percentage point cut to 1.25 percent. They said the monetary policy should be further accommodative.

Previously, the bank had lowered the policy rate by 25 basis points each in August, April and February.

Policymakers noted that the transmission of previous policy rate cuts to the economy is ongoing.

"Most committee members give importance to the timing and effectiveness of monetary policy given the limited policy space, and therefore vote to maintain the policy rate at this meeting," the bank said in a statement.

The economy is projected to grow 2.2 percent this year and 1.6 percent in 2026. The bank said that the growth will slow in the second half of this year and throughout next year due to the impact of US trade tariffs.

Headline inflation is forecast to decline to 0.0 and 0.5 percent in 2025 and 2026, respectively, and is expected to gradually return to the target range by early 2027.