MPC Holds Rate at 1.00% Amid Stronger Thai Economic Growth Outlook

Thansettakij•Economy•8d ago

Reader Briefing

Thailand's Monetary Policy Committee unanimously decided to keep the policy interest rate at 1.00% due to improved economic growth forecasts, while acknowledging uneven recovery and persistent inflationary pressures.

•The Monetary Policy Committee (MPC) voted unanimously to maintain the policy interest rate at 1.00%.
•The Thai economy is projected to grow better than previously expected, driven by exports and technology investments.
•Concerns remain about uneven economic recovery impacting SMEs and vulnerable households due to high living costs.
•Inflation is expected to average 2.8% in 2026 before declining to 1.4% in 2027.

Overview

•On June 24, 2026, the Monetary Policy Committee (MPC) convened and decided to maintain the policy interest rate.
•The MPC stated that the current interest rate level is appropriate for supporting economic recovery.
•The policy interest rate was maintained at 1.00% per annum.
•Economic growth is exceeding expectations, supported by exports and investments in technology sectors like AI, Data Centers, and EVs.
•SMEs and vulnerable households continue to face pressure from high living costs and weak domestic purchasing power.
•Thai economic growth is forecast at 2.3% in 2026 and 1.8% in 2027.
•Average general inflation for 2026 is projected at 2.8%, expected to fall to 1.4% in 2027.
•The Bank of Thailand will closely monitor cost pass-through, inflation trends, debt repayment capacity of SMEs and households, and global economic developments.

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Key Quotes

Don Nakornthab

"The MPC unanimously resolved by 7 to 0 votes to maintain the policy interest rate at 1.00% per annum."

กนง. มีมติเป็นเอกฉันท์ 7 ต่อ 0 เสียง คงอัตราดอกเบี้ยนโยบายไว้ที่ 1.00% ต่อปี

MPC

"Growth remains concentrated and has not spread to all sectors of the economy."

การเติบโตยังมีลักษณะ "กระจุกตัว" และไม่ได้กระจายไปยังทุกภาคส่วนของเศรษฐกิจ

MPC

"Current monetary policy remains accommodative and appropriate to support economic recovery."

นโยบายการเงินในปัจจุบันยังอยู่ในระดับผ่อนคลายและเหมาะสมต่อการสนับสนุนการฟื้นตัวของเศรษฐกิจ

Key Entities

Organization

Monetary Policy Committee (MPC)(กนง.)ℹ️

The committee responsible for setting Thailand's monetary policy, which decided to maintain the policy interest rate.

Bank of Thailand (BOT)(ธนาคารแห่งประเทศไทย)ℹ️

The central bank of Thailand, which oversees monetary policy and financial stability.

Small and Medium Enterprises (SMEs)(SMEs)ℹ️

A segment of businesses facing strong competition, weak purchasing power, and investment slowdowns.

Person

Don Nakornthab(นายดอน นาครทรรพ)

Assistant Governor, Monetary Policy Group at the Bank of Thailand, who presented the MPC's decision.

Timeline

June 24, 2026(24 มิถุนายน 2026)

The date of the Monetary Policy Committee meeting where the decision to maintain the interest rate was made.

2026

The year for which economic growth and inflation forecasts were provided by the MPC.

2027

The year for which future economic growth and inflation forecasts were provided by the MPC.