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Thailand holds policy interest rate at 1%

MPC Secretary Don Nakornthab said the Monetary Policy Committee considers the current policy rate appropriate to support the country's economic recovery. While Thailand's economic outlook has improved compared to previous forecasts, growth is expected to remain moderate and uneven, he noted.

Bangkok (VNA) – The Monetary Policy Committee (MPC) under the Bank of Thailand (BoT) voted unanimously on June 24 to keep the policy interest rate unchanged at 1%.

MPC Secretary Don Nakornthab said the committee considers the current policy rate appropriate to support the country's economic recovery. While Thailand's economic outlook has improved compared to previous forecasts, growth is expected to remain moderate and uneven, he noted.

Don said inflation is projected to rise temporarily due to supply-side factors before easing as those pressures subside. He added that overall credit growth remains weak, with the committee continuing to closely monitor loan quality among small and medium-sized enterprises (SMEs) and vulnerable households.

The MPC also assessed that its accommodative monetary policy stance, combined with targeted fiscal measures, has helped support the economic recovery. The committee therefore decided to maintain the policy rate while continuing to closely monitor inflation and medium-term inflation expectations.

According to the MPC, headline inflation is expected to average 2.8% in 2026 and 1.4% in 2027, in line with previous projections. However, inflation is forecast to exceed the target range during the remainder of 2026 before moderating in 2027.

Thailand's economy is projected to expand by 2.3% this year and 1.8% in 2027, with stronger-than-expected growth supported by rising exports and private investment./.

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