Bank of Thailand Remains on Watch for Inflation Risks

Dow Jones07-08

0751 GMT - The Bank of Thailand weighed the risks of maintaining low interest rates last month, according to minutes of the rate-setting meeting, where committee members voted unanimously to maintain the policy rate at 1.00%. Some committee members pointed to "the impact on the country's credit rating, diminished policy headroom and the accumulation of financial system vulnerabilities driven by extended periods of low interest rates." The central bank expects inflation to accelerate, reiterating its forecast of 2.8% for 2026 and 1.4% in 2027. The BOT noted "that cost pass-through by businesses and medium-term inflation expectations should be closely monitored in an environment where prices and costs remained elevated." (jihye.lee@wsj.com)

 

(END) Dow Jones Newswires

July 08, 2026 03:51 ET (07:51 GMT)

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