Bank of Thailand Keeps Rates at 1.00% as Baht Strengthens to 32.70 Against Dollar
Thailand's central bank voted unanimously to maintain the benchmark rate at 1.00%. The Thai Baht consolidated at 32.70 against the US Dollar, down from 33.90 in late July.
The Bank of Thailand held its benchmark one-day repurchase rate steady at 1.00% for the third consecutive meeting. The Monetary Policy Committee voted unanimously with a 7-0 result to keep an accommodative monetary policy stance through the first half of 2027. Officials stated that current conditions provide sufficient growth support while keeping inflation expectations anchored. They noted that excessive baht appreciation would be undesirable given the fragile domestic recovery, and no rate cuts were warranted under existing circumstances.
In currency markets, the USD/THB pair weakened from 33.90 in late July to approximately 32.70. This decline was driven by a softer US Dollar and rising Middle East risks. Commerzbank FX analysts expect near-term consolidation of the currency pair within the 32.50–33.00 range. The recent exchange rate movements reflect shifting Federal Reserve expectations alongside regional geopolitical tensions. The Bank of Thailand argued that its existing policy successfully anchors inflation without causing volatile currency appreciation.
