The Thai baht traded around 33.8 per US dollar, hovering near its weakest level since July, as the Bank of Thailand maintained an accommodative monetary stance. The central bank unanimously left its policy rate unchanged at 1.00% for the fourth consecutive meeting, in line with expectations, reiterating that the current level remains appropriate to support the economic recovery. This approach contrasts with several regional peers that have tightened policy to rein in inflation.
The decision has reinforced expectations of persistently low domestic borrowing costs, thereby limiting the baht’s yield appeal at a time when the US dollar remains firm. Policymakers revised their GDP growth forecasts higher, projecting 2.4% growth for 2026 and 2.1% for 2027, up from the June estimates of 2.3% and 1.8%, respectively, while emphasizing that overall growth still lags potential.
At the same time, elevated oil prices are pushing up Thailand’s energy import bill, exacerbating external pressures. The country’s trade deficit widened to $5.86 billion in September from $2.48 billion in August, underscoring the growing strain on the external balance.
