MPC keeps policy rate at 1% amid uneven economic growth

Thansettakij•Economy•16h ago

Reader Briefing

The Monetary Policy Committee unanimously voted to keep the policy interest rate at 1.00% per year on August 26, 2026.

•The Monetary Policy Committee maintained the policy interest rate at 1.00% per year.
•Thai economic growth for 2026-2027 is expected to be close to previous estimates, driven by technology and AI cycles.
•Private consumption has expanded lower than expected due to rising living costs.
•General inflation is projected to trend upward until the first quarter of 2027.

•The Monetary Policy Committee voted unanimously on August 26, 2026, to maintain the policy interest rate at 1.00% per year.
•The Monetary Policy Committee views the current interest rate as appropriate for supporting economic recovery.
•Thai economic growth in 2026 and 2027 is projected to be close to previous estimates, supported by exports and private investment in the technology and AI cycle.
•Private consumption grew lower than expected because households are more cautious with spending amid higher living costs.
•SMEs face obstacles in adaptation and intense competition, leading to uneven economic recovery.
•The Monetary Policy Committee notes that general inflation is likely to increase continuously until the first quarter of 2027 due to the El Nino phenomenon and cost pass-throughs.
•The Thai Baht remains volatile against the US Dollar based on the situation in the Middle East and US Federal Reserve policy views.
•The Monetary Policy Committee will monitor the war in the Middle East, international trade barriers, and inflation risks before assessing future policy directions.

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Monetary Policy Committee(กนง.)

The committee that decided to maintain the policy interest rate at 1.00% per year.

US Federal Reserve(ธนาคารกลางสหรัฐฯ)ℹ️

The institution whose monetary policy direction influences market views on the Thai Baht.

Don Nakornthap(ดอน นาครทรรพ)

The Secretary of the Monetary Policy Committee.

Middle East(ตะวันออกกลาง)ℹ️

A region where war is being monitored as a risk factor for the economy and currency volatility.