Bank of Thailand Maintains Policy Rate at 1% Amid Economic Concerns
The Monetary Policy Committee has unanimously decided to keep the policy interest rate at 1.00%, while slightly adjusting GDP growth forecasts for 2026 and 2027.
On October 28, 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 Prachachat Business, the committee expressed ongoing concerns regarding the Thai economy, noting that growth remains low and unevenly distributed across sectors.
Key factors influencing this decision include high levels of household debt and fragile purchasing power among the labor force, which continue to exert pressure on the private sector. Despite these challenges, the MPC has revised its GDP growth projections. The forecast for 2026 has been adjusted upward to 2.4% from the previous estimate of 2.3%, while the 2027 outlook has been raised to 2.1% from 1.8%. These revisions are attributed to positive momentum in exports and increased investment in artificial intelligence technologies.
For residents and travelers, this decision signals a period of continued monetary stability, though the underlying economic fragility suggests that consumer spending may remain cautious. While the interest rate remains unchanged, the impact of high household debt on local businesses and service providers remains a point of observation. It remains to be confirmed how these growth adjustments will translate into tangible improvements for the broader labor market and whether the projected gains from AI investment will materialize as expected in the coming quarters.
