Thai Central Bank Keeps Interest Rate at 1.00 Percent

The Bank of Thailand (BOT) kept its key interest rate at 1.00% Wednesday to balance rising energy costs against weak domestic consumption. The unanimous decision by the monetary policy committee leaves the one-day repurchase rate at its lowest level in three years. Investors are weighing the impact of Middle East tensions on the tourism-dependent economy as inflation forecasts climb.

### Growth Outlook Dims as Inflation Accelerates The BOT lowered its 2026 GDP growth forecast to 1.5%, down from the 1.9% projected in February. This adjustment follows a 2.4% expansion in 2025, which lagged behind regional peers. Central bank officials said the war in the Middle East is directly impacting growth by increasing business costs and eroding household purchasing power.