Banking

Thailand’s economy is projected to grow only 1.5% in 2026, the lowest in three decades, due to external pressures from trade wars and competition, alongside domestic structural issues. Urgent reforms are needed to boost resilience and economic potential amid rising uncertainties.

The MPC unanimously cut the policy rate from 1.50% to 1.25% to address economic slowdown and debt burdens. Future adjustments will consider inflation and stability, with concerns over deflation risks, credit contraction, and the appreciating Thai baht affecting financial conditions.