# BoT holds rate at 1%, cuts 2026 growth to 1.5% and 2027 to 2.0%

- Link: https://www.thailand-business-news.com/banking/304709-bot-holds-rate-at-1-cuts-2026-growth-to-1-5-and-2027-to-2-0
- Published: 2026-04-29T22:26:23+07:00
- Author: News Desk

The Bank of Thailand’s Monetary Policy Committee (MPC) unanimously voted to maintain
the policy interest rate at 1.0% on April 29, 2026, aiming to support an economy
facing moderated growth and heightened uncertainty.

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## Key Points

 * **Economic Growth:** GDP growth projections have been lowered to 1.5% for 2026
   and 2.0% for 2027, as rising energy costs and travel constraints negatively impact
   domestic consumption and tourism.
 * **Inflation Outlook:** Headline inflation is expected to average 2.9% in 2026—
   driven by global energy prices—before easing to 1.5% in 2027 as supply-side pressures
   eventually subside.
 * **Export Performance:** Merchandise exports are forecasted to maintain favorable
   growth, bolstered by sustained global demand for technology products.
 * **Financial Market Volatility:** Increased volatility has been observed in the
   baht and government bond yields, with the committee noting that financial institutions
   remain cautious regarding credit growth and loan quality due to the geopolitical
   climate.
 * **Risk Monitoring:** The MPC identified significant downside risks, including
   potential supply chain disruptions and prolonged high energy prices, particularly
   concerning the potential closure of the Strait of Hormuz.
 * **Policy Flexibility:** While the current rate is deemed appropriate, the committee
   remains prepared to monitor the economic impact of the war and adjust its stance
   if inflation expectations shift or if further fiscal stimulus is introduced by
   the government.

The committee concluded that current policy remains appropriate as the nation contends
with supply-side inflationary pressures, increased business costs, and weakened 
household purchasing power stemming from the conflict in the Middle East.

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[Monetary Policy Committee’s Decision 2/2026](https://www.bot.or.th/en/news-and-media/news/mpc/news-20260429-dw49y0B5.html?rand=113190)