World Economy

JPMorgan Forecasts Three Thai Rate Hikes as Central Banks Shift Policy Stance

JPMorgan Chase projects Thailand's central bank will raise interest rates three times in 2027, breaking sharply with market consensus. This signals a pivot away from accommodative monetary policy across Asia. Central banks globally face pressure to address persistent inflation through tighter conditions. Australia's central bank has already signaled readiness to resume rate increases as inflation remains elevated. Federal Reserve officials indicate further hikes may be necessary to return price growth to target levels. Treasury Secretary Scott Bessent urged the Fed to maintain flexibility on rate decisions, citing potential disinflationary effects from productivity gains and regulatory relief. Zambia's government projects 6% GDP growth in 2027, the strongest expansion since 2021, bolstered by copper production expected to exceed 1 million tons.