The Bank of Thailand maintained its benchmark interest rate at 1.00% on Wednesday, defying forecasts from two economists who had projected a 25-basis-point increase.
The decision, announced on August 26, 2026, followed a 0.2% quarter-over-quarter contraction in Thai gross domestic product during the second quarter. Annual growth slowed to 1.9% from 2.8% in the prior three months, according to data cited in the central bank’s assessment.
The policy outcome aligned with the consensus of 30 out of 32 economists surveyed by LSEG, who had anticipated no change in borrowing costs. The two dissenting forecasts had projected a modest tightening to support economic momentum amid weakening demand conditions.
Thailand’s central bank has faced increasing pressure to bolster growth as external demand softens and domestic consumption remains subdued. The decision to hold rates steady reflects a cautious stance, balancing inflation concerns with the need to sustain economic recovery.
