The Bank of Thailand’s Monetary Policy Committee (MPC) voted unanimously today to cut the policy rate by 0.25 percentage points, to 1.50 percent, with immediate effect.
Sakkapop Panyanukul, secretary of the MPC, said in a press statement that the Thai economy in 2025 and 2026 is projected to expand, close to previous assessments.
US trade policies will, however, exacerbate structural problems and weaken Thailand’s competitiveness, while certain sectors of the economy, particularly SMEs, are more vulnerable as headline inflation remains subdued.
He said that, as such, the MPC views that monetary policy should be more accommodative, to ensure that financial conditions are conducive to business adjustment and to help alleviate the burden on vulnerable businesses.
A policy rate of 1.50 percent is the lowest for two years.
