Bank of Thailand Holds Benchmark Interest Rate Steady at 2.5% for Fourth Consecutive Time

Despite the government's repeated demands for interest rate cuts, it was carried out

The Bank of Thailand (BOT) kept interest rates unchanged despite government demands to lower the benchmark rate.

[Image source=Yonhap News]

According to major foreign media on the 12th, the BOT held a Monetary Policy Committee meeting and maintained the benchmark interest rate at 2.5%. Six committee members voted to keep the rate unchanged, while only one member proposed a 0.25 percentage point cut. In a statement, the BOT said, "The majority judged that the current benchmark rate is appropriate for the economic situation and helps protect macro-financial stability."

The BOT's decision came despite repeated government calls for a rate cut. Prime Minister Srettha Thavisin and officials publicly urged for a reduction in the benchmark rate several times, but the BOT has rejected these requests. The Prime Minister also expressed hopes for a rate cut to stimulate the economy just the day before.

From August 2022 to September last year, the BOT raised rates consecutively in eight Monetary Policy Committee meetings. During this period, the benchmark rate rose from 0.50% to 2.50%, an increase of 2 percentage points, reaching the highest level in 10 years. Since then, from November last year until now, the BOT has kept the benchmark rate unchanged for four consecutive meetings.

This content was produced with the assistance of AI translation services.