Thailand Central Bank Holds Rate Steady at 1%

Thailand’s central bank again held its policy rate at 1.00% for a third straight meeting, signaling a cautious stance as the economy shows fragile, uneven growth. Inflation remains within target, giving authorities room to pause while the economy wrestles with weak domestic demand and high household debt. Growth in the second quarter cooled, and while exports and private investment are supported by technology and AI-driven momentum, consumption remains slower, with SMEs facing adaptation pressures. The outlook notes that global energy prices and the Middle East conflict, along with El Niño effects, could influence inflation and demand, underscoring a still accommodative monetary policy stance. Forecasts suggest the rate pause could extend given inflation remains tame and growth prospects depend on external shocks and domestic consumption.