Bank of Thailand Maintains Policy Rate at 1.00%

On August 26, 2026, the Monetary Policy Committee (MPC) of the Bank of Thailand announced a unanimous decision to maintain the policy interest rate at 1.00% per annum. According to Don Nakornthab, secretary of the MPC, this decision reflects a cautious approach to an economy that is growing, albeit at a low and uneven pace. While the technology and artificial intelligence sectors are providing a boost to exports and private investment, private consumption remains lower than expected as households navigate rising costs of living.

For residents and travelers, this decision is significant as it signals a continued accommodative monetary policy aimed at supporting economic recovery. However, the committee highlighted concerns regarding the contraction of credit for small and medium-sized enterprises (SMEs) and the financial health of vulnerable households.

Looking ahead, several factors remain to be confirmed and monitored. The committee is closely watching the impact of geopolitical tensions in the Middle East, international trade barriers, and potential inflationary pressures. While inflation is currently lower than initial projections, it is expected to rise temporarily due to supply-side factors. The long-term stability of the economy will depend on how these global risks evolve and whether the current targeted financial measures can effectively support the recovery of smaller businesses and consumer spending power.