While elevated oil prices have caused inflation to rise, economists expect the Bank of Thailand to maintain its policy interest rate for the rest of 2026, assuming the higher costs will be temporary.
Wachirawat Banchuen, senior financial markets strategist at Siam Commercial Bank Financial Markets (SCB FM), said while the market believes Thai inflation has the potential to peak above 5% by the end of this year, it could decline in 2027 and return to the central bank's target range of 1-3%.
