The Bank of Thailand kept its benchmark interest rate unchanged at 1% at its June 2026 meeting, in line with market expectations and maintaining borrowing costs at their lowest level since 2022. The Thai economy is now projected to grow by 2.3% in 2026 and 1.8% in 2027, with expansion stronger than previously anticipated.
The improved outlook is underpinned by solid merchandise exports, increased private investment tied to the technology and AI cycle, government measures designed to cushion the impact of the energy crisis, and easing conditions related to the conflict in the Middle East. At the same time, the central bank left its inflation forecasts unchanged, expecting headline inflation to average 2.8% in 2026 and 1.4% in 2027.
Recent price pressures have largely stemmed from supply-side factors, but officials anticipate that inflation will moderate as these pressures gradually subside. The Committee reiterated that it will continue to closely monitor the inflation outlook and associated risks.
