Thailand’s central bank kept its key interest rate at 1.00% as expected, pausing after earlier cuts while assessing the economic impact of rising oil prices linked to the Middle East conflict.
Growth is forecast at 1.5% in 2026, improving to 2.0% in 2027, with higher energy costs weighing on businesses and household spending. Inflation is projected to rise to 2.9% in 2026 before easing in 2027.
Despite lower interest rates, lending remains weak as banks stay cautious amid economic uncertainty and rising risks.