It occurred at a busy intersection, right on the edge of a large protest camp.
Prime Minister Yingluck Shinawatra was quick to describe it as a terrorist attack and blamed protesters for the action.
Opposition leaders blamed the government for the act, and listed it as one more reason that the government needs to be "destroyed by the people".
It is unclear what was used to cause the explosion, but the government said it was military grade explosives.
In another incident a grenade was thrown at a courthouse, in the city, but it proved to be a dud.
Protests have been going since November, with demands that the prime minister resign, and many demand she and her family leave the country.
They had seemingly been coming to an end, two weeks ago, but then erupted again with violent clashes last week.
Supporters of the government and opposition leaders have turned up the rhetoric, threatening each other with violence and promising to destroy each other.
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