Bank of Thailand governor Vitai Ratanakorn said the central bank will hold its policy rate at the current setting for as long as possible, aiming to cushion the Thai economy from external shocks. The decision comes amid rising commodity prices and a volatile global backdrop, prompting officials to prioritize growth stability over premature tightening.

Inflation pressures are expected to pick up as the conflict in the Middle East pushes oil and food costs higher, a development that could erode real wages in Thailand. Yet the central bank judges that a rate hike would risk choking credit growth, especially for small‑and medium‑sized enterprises that still rely on cheap financing.

Bond yields in Bangkok edged lower after the announcement, reflecting investor confidence that the policy stance will keep borrowing costs stable for months. The Thai baht, which had weakened against the dollar earlier this week, steadied as traders priced in a more predictable monetary environment, easing pressure on import‑dependent sectors.

By refusing to pre‑emptively raise rates, the Bank of Thailand signals a willingness to absorb short‑term price volatility while protecting domestic demand. Investors can expect monetary policy to remain unchanged until inflation breaches the central bank’s tolerance band, making the current rate a de‑facto ceiling for the foreseeable future.