Bank of Thailand holds rate at 1% as 2026 growth outlook improves

The rate stayed put while the 2026 forecast moved higher

All seven committee members backed the decision to leave the policy rate at 1.00%. The rate had already been cut from 1.25% to 1.00% in February, and the June meeting extended the pause that followed.

The growth forecasts shifted more noticeably. In April, the Bank of Thailand projected GDP growth of 1.5% for 2026 and 2.0% for 2027. By June, the 2026 forecast had been raised to 2.3%, while the 2027 projection was trimmed to 1.8%.

The central bank pointed to stronger merchandise exports and private investment linked to the technology cycle, alongside a less severe impact from the Middle East conflict on manufacturing and tourism than it had previously expected. That did not amount to a broad-based recovery. The Bank of Thailand said smaller businesses were still facing difficult competitive conditions, while many households remained under pressure from slower income growth and higher living costs.

For practical context, see Thailand economy and finance. This development also connects with World Bank Raises Thailand’s 2026 GDP Growth Forecast to 2%.

A 1% policy rate does not set your mortgage or deposit rate

For borrowers, savers and homebuyers, the policy rate is an important financial benchmark, but it is not the retail rate a bank must offer. Individual loan and deposit pricing also reflects funding costs, borrower risk, collateral, maturity and each bank’s lending standards.

The June statement said interest rates across the financial system had been broadly stable and overall credit growth remained low. Lending growth was concentrated among large corporates, while SME lending continued to contract. For anyone planning to borrow, the distinction has a practical effect: an unchanged policy rate does not guarantee that credit will become easier to obtain or cheaper for a particular applicant.

The decision is also not a standalone forecast for the baht or property prices. Monetary policy influences financing conditions, but exchange rates and housing markets respond to many other domestic and external forces.

**The August meeting confirmed the rate was still 1%**

The June decision is no longer the latest one. On 26 August, the Monetary Policy Committee again voted unanimously to keep the policy rate at 1.00%.

By then, the Bank of Thailand said growth in 2026 and 2027 was broadly in line with its previous assessment. Exports and private investment had performed better than expected on technology-related momentum, while private consumption was weaker as households remained cautious amid high living costs. For current budgeting, 1.00% therefore remained the policy-rate reference point after the August meeting, while actual bank pricing still needed to be checked product by product.