Bank of Thailand Holds Rate at 1.00% as 2026 Growth Forecast Rises to 2.3%

3 articles · Updated · Bangkok Post · Jun 24

Thailand’s central bank kept its benchmark rate at 1.00% in a unanimous 7-0 vote, extending the pause after six cuts totaling 150 basis points between October 2024 and February.
The MPC said growth is improving but remains low and uneven, lifting its 2026 GDP forecast to 2.3% from 2.0% on stronger exports and technology- and AI-linked investment.
Inflation is still expected to rise on supply-side pressures before easing, with May CPI at 2.8% year on year after 2.9% in April and headline inflation seen averaging 2.8% this year.
The bank said accommodative policy is still needed because credit growth remains weak, small businesses face intense competition, and households are squeezed by slower income growth and higher living costs.
The baht has weakened alongside a stronger U.S. dollar as markets expect Federal Reserve rate hikes later this year, while most Reuters-polled economists see Thai rates staying unchanged through 2026.