The Bank of Thailand kept its benchmark interest rate at 1.00% on Wednesday, as all 26 economists surveyed by LSEG had anticipated. The central bank's main concern is a weakening economy, with second-quarter growth slowing to 1.9% year-over-year.
The Bank of Thailand held its benchmark rate unchanged at 1.00% on Wednesday, keeping the level set after a 25 basis point cut in February. All 26 economists surveyed by LSEG had anticipated the hold.
The monetary policy committee voted unanimously to keep the rate where it is. However, the central bank faces a weakening economy as its primary concern, and growth decelerated to 1.9% year-over-year in the second quarter, down from 2.8% in the first quarter.
Recent third-quarter data indicates the economy continues to face difficulties. Thailand has been significantly affected by rising global energy prices, and it has not gained as much as some other Asian economies from increased AI-related exports.
The bank stated that growth is "below its potential". Inflation remains subdued in the country.
Source: Investing.com
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