The Bank of Thailand left its benchmark interest rate unchanged at 1% at its June 2026 meeting, in line with market expectations and keeping borrowing costs at their lowest level since 2022. The Thai economy is now forecast to grow 2.3% in 2026 and 1.8% in 2027, with growth proving stronger than previously anticipated. The outlook is supported by robust merchandise exports, private investment linked to the technology and AI cycle, government measures aimed at cushioning the impact of the energy crisis, and improving conditions surrounding the Middle East conflict. Meanwhile, the central bank maintained its inflation outlook, projecting headline inflation to average 2.8% in 2026 and 1.4% in 2027. While recent price pressures have been driven by supply-side factors, officials expect inflation to moderate as these pressures gradually ease. The Committee also said it will continue to closely monitor the inflation outlook and related risks.