The Monetary Policy Committee of the Bank of Thailand held the policy rate at 1.00 percent at its 29 April 2026 meeting, judging that an unchanged stance best supports a slowing economy while the current upturn in inflation stems mainly from supply-side pressures linked to the Middle East war. The decision follows a 25 bp reduction in February that lowered the rate from 1.25 percent. Headline inflation is now projected to average 2.9 percent in 2026—temporarily above the 1–3 percent target band—before easing to 1.5 percent in 2027 as energy and other supply shocks fade; core inflation is seen at 1.6 percent this year. Real GDP growth is expected to decelerate to 1.5 percent in 2026 and 2.0 percent in 2027, pressured by weaker household purchasing power, higher business costs and softer tourism, while credit growth remains subdued amid cautious bank lending. Thai government bond yields have risen with global moves and the baht has depreciated, reflecting the economy’s heavy reliance on Middle East energy imports. The Committee cited heightened global uncertainty, including possible supply disruptions from the closure of the Strait of Hormuz, and pledged to closely monitor war-related risks, inflation dynamics and medium-term inflation expectations.
Bank of Thailand 2026-04-29
Bank of Thailand holds policy rate at 1.00%
Bank of Thailand’s Monetary Policy Committee left the policy rate unchanged at 1.00 % on 29 April, following February’s 25 bp cut, citing a need to support slowing growth while current inflation pressures are supply-driven and seen averaging 2.9 % in 2026 before easing. The committee flagged heightened risks from the Middle East conflict, including potential Strait of Hormuz disruptions, and will closely watch war-related developments, inflation dynamics and credit conditions.