25.06.202507:20:04UTC+00Bank of Thailand Holds Rates Steady

The Bank of Thailand's decision during its June 2025 policy meeting was to maintain the benchmark interest rate at 1.75%, a move that met widespread expectations. The Monetary Policy Committee voted with a majority of 6-1 to keep the rate steady, sustaining its lowest point since April 2023. Projections for headline inflation suggest it will remain minimal, anticipated at 0.5% for 2025 and rising slightly to 0.8% in 2026. Core inflation is also predicted to stay low at 1% in 2025 and 0.9% in 2026. In May 2025, consumer prices in Thailand decreased by 0.57%, signaling deflation for the second month in a row. Additionally, the Thai economy is expected to grow by 2.3% in 2025 and 1.7% in 2026. The economy showed a 3.1% year-on-year expansion in the first quarter of 2025, surpassing the forecasted 2.9%, although it had slowed from a revised 3.3% growth in the previous quarter. Despite acknowledging significant economic uncertainty, the Committee emphasized its commitment to adjust monetary policy in response to shifts in economic conditions, potential risks, and inflation patterns as necessary.