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The Thai central bank kept its interest rate unchanged on Wednesday as the economy is expected to grow faster than the previous estimate this year amid subdued inflation.
The Monetary Policy Committee of the Bank of Thailand unanimously voted to keep the interest rate at 1.50 percent.
The benchmark rate has been at the current level since April 2015, when it was reduced by a quarter point.
The bank lifted its growth outlook to 3.4 percent from 3.2 percent for 2017. The bank said economic growth will improve to 3.6 percent in 2018 on the back of increased domestic spending and exports.
Risks to growth forecasts skew more downward mainly due to international economic uncertainty, the bank added.
Inflation was forecast to gradually increase and return to the midpoint of the inflation target although it was revised down due to the lower-than-expected outturn and oil price.
The bank lowered its inflation outlook for 2017 to 1.2 percent from 1.5 percent. In 2018, inflation was expected to rise to 1.9 percent.
Looking ahead, Krystal Tan, an Asia economist at Capital Economics, said she doubts the BoT will be in any hurry to adjust rates soon.
For a start, the government has announced plans to raise spending and the BoT will likely be content to let fiscal policy take the lead in boosting growth.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.