Thai Central Bank Holds Rate as Growth Remains Weak

By Amanda Lee

Thailand's central bank held rates for a fourth consecutive meeting on Wednesday as relatively controlled inflation gives it space to maintain a pro-growth stance.

The Bank of Thailand's monetary policy committee voted unanimously to maintain the policy rate at 1.00%, a decision correctly predicted by all 14 economists polled by The Wall Street Journal. One member was unable to attend the meeting, said the BOT.

The move comes on the cusp of the Federal Reserve's interest-rate decision, which is also widely tipped to be a hold even as the continued oil shock stemming from the war in the Middle East keeps global central banks under pressure.

It's a classic monetary policy dilemma: raise rates to tamp inflation and risk stymieing growth or look past the supply shock at the risk of falling behind the curve.

The BOT is one of the few central banks that has not tightened its policy settings during a year where others--including the Fed--have hiked. Earlier, New Zealand's central bank surprised markets by holding interest rates steady.

Where economies like the Philippines have opted to act aggressively to stop energy costs from spilling over into broader inflation, Thailand has had the advantage of entering the oil crisis with low inflation. Despite also importing the bulk of its fuel from the Middle East it has yet to feel a significant inflationary hit.

That has allowed Thai policy makers to keep an accommodative policy stance that can help aid what has been a slow and uneven recovery. Even with investment and exports performing well, growth remains below potential and consumption anemic.

Barring a massive shock, the BOT is unlikely to shift policy settings anytime soon.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

October 28, 2026 03:18 ET (07:18 GMT)