Monetary policy ‘very accommodative’; growth outlook unchanged: central bank
The Bank of Thailand's (BoT) monetary policy is "very, very accommodative" right now to support a weak economy, with growth expected to exceed 3% in the current quarter and hit around 2% in the last quarter of 2026, an assistant governor said on Thursday.
The Bank of Thailand (BoT) has maintained a "very, very accommodative" monetary policy to support a weak Thai economy, according to an assistant governor. With growth expected to exceed 3% in the current quarter and around 2% in the last quarter of 2026, the central bank's interest rate of 1.00% remains among the lowest globally.
The BoT left the key interest rate unchanged at 1.00% for the third consecutive time last month, citing low and uneven economic growth. The central bank's next policy review is scheduled for October 28, 2026. Assistant Governor Don Nakornthab stated that the current accommodative stance is necessary due to the weak economy, but options remain open, including rate reductions if the economy enters a crisis.
He expects headline inflation to be around 2% in 2026, down from the previous forecast of 2.8%. Exports are anticipated to grow over 14% this year, outpacing the 14% growth projected in June. The BoT's policy rate has been cut six times by a total of 150 basis points between October 2024 and February 2026 to stimulate an economy hampered by weak domestic demand and high household debt levels.
The weakening Thai baht, down 5.7% against the US dollar this year, is beneficial for exports and the economy, but should remain stable and orderly.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
