world-economy

Thailand's Central Bank Holds Rates Steady as Energy Costs Weigh on Growth

The Bank of Thailand maintained its benchmark interest rate at its third consecutive meeting Wednesday, prioritizing economic support as the nation grapples with elevated energy expenses tied to Middle East tensions. Policymakers signaled a continued accommodative stance to bolster recovery efforts amid persistent headwinds. The decision underscores a divergent approach across Asia's monetary authorities. While Thailand opts for patience, other regional central banks are tightening policy. Service price inflation in Japan accelerated last month, building the case for a rate increase from the Bank of Japan. South Korea's central bank weighed back-to-back hikes as growth and inflation remained firm. European officials similarly pushed for tighter policy, citing resilient economic conditions and Middle East-related price pressures. Regional policymakers face a delicate balance between supporting growth and controlling inflation expectations.