On June 24, as the U.S. and Iran seek to reach a lasting peace agreement, Thailand's central bank decided on Wednesday to maintain the policy interest rate at 1.00%, in line with market expectations, while reassessing the economic impact of the war in the Middle East. Although the risks posed by the war are diminishing, uncertainty remains high. Last week, several central banks, including the Federal Reserve, also adopted a wait-and-see approach, while Japan, Indonesia, and the Philippines implemented interest rate hikes to mitigate the war's impact on their economies. Before a ceasefire agreement in the Middle East is reached, the Bank of Thailand warned that domestic economic growth would slow due to rising costs squeezing businesses and weakening household purchasing power. The tourism sector, a crucial pillar of Thailand's economy, has also been affected by rising costs and travel restrictions. Even if geopolitical threats diminish, the lagging effects of the conflict will continue to pose challenges to the economy. Additionally, the central bank must contend with food supply risks triggered by the El Niño phenomenon and the ongoing uncertainty surrounding U.S. tariff policies. Many economists believe that the Bank of Thailand may maintain its current stance for the remainder of the year, keeping a loose monetary policy to support the still fragile economy.