The Bank of Thailand kept its benchmark interest rate unchanged at 1% at its August 2026 meeting, with the decision passed unanimously as the central bank maintained its accommodative stance to support the economic recovery. The Thai economy is projected to grow broadly in line with previous assessments for 2026 and 2027, underpinned by stronger‑than‑expected merchandise exports and private investment associated with the technology and AI cycle. However, overall growth remains low and uneven, and private consumption has softened as households stay cautious in the face of rising living costs.
Headline inflation is now expected to be lower than previously forecast, largely reflecting subdued energy prices, but is projected to rise through the first quarter of 2027 due to El Niño effects and the gradual pass‑through of higher costs. Thereafter, inflation is anticipated to return to low levels, weighed down by weak domestic demand and output remaining below potential.
