Bank of Thailand holds key interest rate steady at 2.5%

Economists expect central bank to wait for Fed's move before easing

Some economists say the central bank us unlikely to cut interest rates before the Fed as it could cause capital outflows and weaken the baht, adding to inflationary pressure. © Reuters

APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writer

June 12, 2024 16:04 JST

Updated on June 12, 2024 18:03 JST

BANGKOK -- Thailand's central bank kept its key interest rate unchanged at 2.5%, following a monetary policy committee meeting on Wednesday, as the country's inflation rate returned to the bank's target range for the first time in a year.

It was the fourth straight time the Bank of Thailand has stood pat. According to a Reuters poll, 24 out of 27 economists expected the central bank to hold the rate steady.