The Bank of Thailand's (BOT) monetary policy committee decided to keep the rate steady, aligning with most economists' expectations in a recent survey, according to Reuters.
BOT Assistant Governor Piti Disyatat commented on the potential for future adjustments, saying, "We have to wait and see how stimulus measures will change. If the conditions change, adjustments may be needed to maintain the neutral rate."
The decision follows recent political developments, including the appointment of Paetongtarn Shinawatra as prime minister after Srettha Thavisin's removal. While Paetongtarn has indicated she will continue her predecessor's policies, she plans to reassess the controversial "digital wallet" stimulus program.
The central bank anticipates inflation will return to its 1 to 3 percent target range by year-end. It also projects economic growth to approach 3 percent in the third quarter and 4 percent in the final quarter of 2024.
Some analysts predict possible rate cuts later this year, citing concerns over private sector demand and uncertain fiscal policies. The BOT's next policy review is set for October 16.