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Thailand central bank holds key rate at 1.00%

8/27/2026

42 8 Full Breakdown

Summary

Story summary

Thailand's central bank kept its key policy rate at 1.00% after a unanimous vote.
The decision marks the third consecutive meeting with no rate change.
Q2 2026 GDP grew 1.9% YoY, slowing from 2.8% in Q1.
The bank raised its 2026 growth forecast to 2.3% and expects a 14% export rise.
Headline inflation slowed to 1.95% in July, staying within the 1-3% target range.

History

Historical Context

In July 1997 Thailand’s attempt to peg the baht to the US dollar triggered the Asian financial crisis, forcing Prime Minister Chavalit Yongchaiyudh to secure a $17 billion IMF loan and sharply raise rates. The export-driven economy now leans on overseas demand, keeping the policy rate at 1 % with inflation near 2 %.

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Story summary

Thailand's central bank kept its key policy rate at 1.00% after a unanimous vote.
The decision marks the third consecutive meeting with no rate change.
Q2 2026 GDP grew 1.9% YoY, slowing from 2.8% in Q1.
The bank raised its 2026 growth forecast to 2.3% and expects a 14% export rise.
Headline inflation slowed to 1.95% in July, staying within the 1-3% target range.

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