MPC policy rate likely to remain unchanged

The Bank of Thailand’s Monetary Policy Committee (MPC) is expected to keep the policy rate unchanged at today’s meeting, supported by stronger economic growth than forecast and an improving political outlook.

- SOMRUEDI BANCHONGDUANG

Amonthep Chawla, chief economist at CIMB Thai Bank, said the central bank is likely to maintain the policy rate at 1.25% thanks to a surprising economic performance in the final quarter of last year.

The National Economic and Social Development Council reported the Thai economy expanded by 2.5% year-on-year in the fourth quarter of 2025, rebounding from 1.2% in the previous quarter.

Full-year growth in 2025 tallied 2.4%, beating earlier projections of 2.0-2.2%.

"The election outcome has helped reduce political uncertainty and ensured continuity for economic policies, which should support economic momentum this year,” said Mr Amonthep.

“As a result, we expect the central bank to keep its policy rate at 1.25% throughout the year.”