Bank of Thailand Holds Rate at 1.0%, Says Fiscal Policy Needed to Boost Economy

Money & Banking··TH·Read original
2▲0 ▼1Impact / 5
Summary · why it matters

The Monetary Policy Committee (MPC) voted unanimously to keep the policy interest rate at 1.0% per annum. Mr. Don Nakornthap, MPC Secretary, revealed that the Thai economy began to temporarily slow in the second quarter, growing at 1.9%, and is expected to recover to its peak in the third quarter, with growth exceeding 3% driven by economic stimulus measures, especially the "Thai Chuay Thai Plus" project. The MPC views that further rate cuts would not be cost-effective, as monetary policy has limitations, and it is necessary to use targeted measures focusing on two fronts: restructuring and reducing household debt burden, and helping SMEs gain better access to credit. Meanwhile, fiscal policy is more important than monetary policy in the long run. Krungsri Global Markets noted that the baht is stable near 32.72 baht per dollar and expects the MPC to hold rates at 1.00% for several more quarters, as economic growth is below potential.

Impact on assets 4

Financials▲ · 1 stocks
Bank of Ayudhya PCL
BAY
± MixedMonetaryrelevance

Bank of Thailand holds rate at 1.0%, which may affect net interest margins but no direct mention of Bank of Ayudhya.

Others▼ · 2 stocks
Others▲ · 1 stocks
© 2026 MarketIVNews