The Bank of Thailand’s Monetary Policy Committee unanimously held the policy rate at 1.00% on 24 June 2026, judging that an accommodative stance should continue to support recovery as economic growth has strengthened from the previous assessment but remains low and uneven, while inflation is being pushed up by supply-side factors and is expected to ease as those pressures dissipate. The Committee said targeted financial measures alongside monetary policy have helped support the economy. It projects growth of 2.3% in 2026 and 1.8% in 2027, with support from merchandise exports, private investment linked to the technology and AI cycle, government energy-relief measures and an improved situation around the Middle East conflict, although small and medium-sized enterprises and many households remain under pressure. Headline inflation is projected to average 2.8% in 2026 and 1.4% in 2027, with inflation expected to exceed the target range for the rest of 2026 before declining in 2027, while medium-term inflation expectations remain anchored within the target range. The Thai baht has depreciated against the USD, which the Committee attributed to a shift in the Federal Reserve’s monetary policy stance, and credit growth remains subdued, driven mainly by large corporates while SME lending continues to contract and loan quality among SMEs and vulnerable households warrants monitoring. The Committee said the current rate is appropriate and will continue to closely monitor inflation, inf

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