Thailand's 1% policy rate remains "very, very accommodative" as it seeks to support an economy weighed down by weak domestic demand and high household debt, Bank of Thailand Assistant Governor Don Nakornthab told Reuters on Thursday.

The central bank expects the economy to grow by over 3% in the current quarter, then slow to around 2% in the final quarter of 2026. He said the bank was maintaining its June GDP growth forecasts of 2.3% for 2026 and 1.8% for 2027, awaiting updated projections at its Oct. 28 policy meeting, according to the report.

Don said the current rate was appropriate but left open further cuts or increases, while a weaker baht was supporting exports and the economy as long as its movement remained stable, Reuters said.

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