The Bank of Thailand (BoT) left its policy rate unchanged at 1.50 percent as widely expected. All seven members of the monetary policy committee (MPC) unanimously voted to keep rates unchanged.

The BoT acknowledged that economic activity in Thailand is picking up and now expects the full year 2017 growth at 3.4 percent up from previous forecasts of 3.2 percent. At the same time, it emphasised that monetary policy will stay accommodative.

Growth is improving on the back of better export performance, recovery in farm incomes and tourist flows and is expected to be further boosted by higher public infrastructure spending and a reduction in household debt burden. Economic activity is slowly normalising, however, it is not sufficiently strong or broad-based to generate demand-pull inflationary pressures.

"Against this outlook of improving but non-inflationary growth, we expect the BoT to maintain its policy rate at 1.50% through 2017," said ANZ in a report to clients.