Thailand keeps key interest rate at 2.50%

The Bank of Thailand (BOT) opted to maintain its key interest rate at 2.50 per cent on Wednesday. The central bank’s Monetary Policy Committee (MPC) voted 6-1 to hold the one-day repurchase rate, currently the highest level in over a decade.

One dissenting member advocated for a 0.25 percentage point reduction to reflect Thailand’s lower growth potential due to structural challenges and to provide some relief for borrowers facing debt burdens.

Thailand’s headline inflation is projected to decrease compared to previous estimates. Favourable weather conditions are expected to boost agricultural production, leading to lower prices for agricultural goods.

Attribution: Bank of Thailand report

Subediting: M. S. Salama