Thailand’s central bank is maintaining a 1.00% policy rate, described by Assistant Governor Don Nakornthab as very, very accommodative, to support an economy weakened by soft domestic demand and high household debt. Growth is expected to exceed 3% in the current quarter before slowing to around 2% in the last quarter of 2026. The Bank of Thailand has held rates unchanged for three consecutive meetings, after cutting them six times by a combined 150 basis points (one-hundredth of a percentage point) between October 2024 and February 2026. Thailand’s economy grew 1.9% year-on-year in the second quarter, down from 2.8% in the previous quarter. The central bank continues to forecast GDP growth of 2.3% this year and 1.8% next year, with updated projections due at its October 28 policy meeting. Don said headline inflation could average around 2% this year, below the June forecast of 2.8%, while exports could exceed the 14% growth projected in June. The baht has weakened 5.7% against the U.S. dollar so far this year, a move the central bank views as supportive for exports and the economy provided it remains orderly and does not become excessively volatile. Although private-sector expectations favor an extended pause, Don said the central bank’s options remain open in either direction.