BANGKOK (Reuters) -Thailand’s central bank left its key interest rate steady on Wednesday, counter to market expectations for a cut as the economy struggles with a strengthening baht, negative inflation and U.S. tariffs.
The Bank of Thailand’s monetary policy committee voted 5 to 2 to keep the one-day repurchase rate steady at 1.50% after a quarter-point reduction at the previous meeting in August.
Only six of 26 economists in a Reuters poll had predicted rates would be kept steady this week. Nineteen had predicted a 25 basis point cut, and one forecast a 50 basis point cut.
Among those who provided a longer-term outlook on rates in the poll, 13 of 21 economists expected the policy rate to stand at 1.25% by the end of 2025. The remaining eight saw it at 1.00%.
“The Committee assesses that monetary policy should be accommodative to support economic recovery. The transmission of previous policy rate cuts to the economy is ongoing,” the central bank said in a statement.
The BOT now expects the economy to grow 2.2% this year and 1.6% in 2026, slightly lower than its previous forecasts of 2.3% and 1.7%, respectively. Last year’s growth was 2.5%.
Southeast Asia’s second-largest economy has lagged peers as it struggles with U.S. tariffs, high household debt, weak consumption, and a strong currency.
Wednesday’s policy review was the first for new Governor Vitai Ratanakorn.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Chayut Setboonsarng; Editing by John Mair and David Stanway)
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