Bangkok Post
BoT set to hold firm on its policy rate
Compiled by KHAO Editorial — aggregated from 1 outlet. See llms.txt for citation guidance.
◌ Single Source
The Bank of Thailand (BoT) is widely expected to leave its benchmark policy rate unchanged at 1% at Wednesday's Monetary Policy Committee (MPC) meeting, with research houses noting that subdued inflationary pressures and heightened external uncertainties warrant a steady stance.
Key facts
- The Bank of Thailand (BoT) is widely expected to leave its benchmark policy rate unchanged at 1% at Wednesday's Monetary Policy Committee (MPC) meeting, with research houses noting that subdued inflationary pressures and heightened
- K-Research forecasts headline inflation will average 3.1% this year, with price pressures expected to peak in the third and fourth quarters before gradually easing in 2027.
- The central bank, he said, has not changed its view that headline inflation would average 3% this year.
- Krungsri Research said the MPC is likely to maintain the policy rate at 1%, citing uncertainties surrounding the global economy despite ongoing peace talks between the US and Iran.
- Bank of Thailand governor Vitai Ratanakorn said that although peace talks between the US and Iran have not yet yielded fruitful results, the central bank has maintained its assessment that the Iran war would end by the middle of the year.
- We expect the MPC to maintain its policy rate at 1% through the end of this year, with limited scope for any rate increases,"
Summary
Bank of Thailand governor Vitai Ratanakorn said that although peace talks between the US and Iran have not yet yielded fruitful results, the central bank has maintained its assessment that the Iran war would end by the middle of the year.
Under the bank's existing scenario, global oil prices would continue to decline, easing Thailand's inflationary pressure, though the government's Thai Help Thai Plus scheme would accelerate inflation.