The Bank of Thailand kept its benchmark interest rate unchanged at 1.75% during its June 2025 policy meeting, as widely expected. The Monetary Policy Committee voted 6-1 in favor of maintaining the current rate, which remains at its lowest level since April 2023. Headline inflation is projected to stay at just 0.5% in 2025 and 0.8% in 2026, while core inflation is also expected to remain low, at 1% for 2025 and 0.9% in 2026. Consumer prices in Thailand fell by 0.57% in May 2025, marking the second consecutive month of deflation. Meanwhile, the Thai economy is forecast to grow by 2.3% in 2025 and 1.7% in 2026. The economy expanded by 3.1% year-on-year in the first quarter of 2025, exceeding expectations of 2.9%, but easing from a revised 3.3% growth in the previous quarter. The Committee noted that the economic outlook remains highly uncertain but reaffirmed its readiness to adjust monetary policy as needed in response to evolving economic conditions, risks, and inflation dynamics.
