The BoT kept its policy rate unchanged for a second meeting, citing uneven economic recovery and transitory inflation pressures.
The Bank of Thailand left its benchmark interest rate at 1.0% for the second consecutive meeting, aligning with market expectations. The decision reflects concerns over uneven economic growth, despite stronger-than-expected recent data, while inflation is viewed as temporary and supply-driven.
The central bank’s committee assessed that current policy remains accommodative to support recovery. Inflation, though rising, is expected to ease as supply disruptions subside, reducing urgency for tightening. Officials indicated rates are likely to stay on hold for the rest of the year, prioritizing growth risks.
USD/THB climbed 0.9% to 33.43, marking a fifth straight session of gains. Authorities attributed the baht’s weakness to broad USD strength and equity outflows, while pledging to intervene if volatility becomes excessive.