Central bank holds key rate at 2.50%, as expected

The Bank of Thailand left its key interest rate unchanged on Wednesday, as expected, ending a year-long tightening cycle, amid slowing economic growth and below-target inflation.

The BoT’s monetary policy committee voted to hold the one-day repurchase rate at 2.50%, the highest in a decade. It had raised the rate by 200 basis points since August last year to curb inflation.

All 28 economists in a Reuters poll had predicted the BOT would hold the rate on Wednesday, with median forecasts showing no policy change until July 2025 at the earliest.