Thailand Interest Rate

Thailand’s monetary policy should remain accommodative to support the economy, and an easing would not significantly increase financial stability risks, the minutes of the Bank of Thailand’s (BoT) August 13 policy meeting showed on Wednesday. “At the same time, it was important to ensure macro-financial stability, while taking into account the limited policy space.” At the meeting, the monetary policy committee voted unanimously to cut the one-day repurchase rate by 25 bps to a near three-year low of 1.50%. The August cut was the fourth reduction in 10 months to support a sluggish economy grappling with US tariffs and softer tourism. The central bank expects the economy to grow by around 2.3% in 2025 and 1.7% in 2026, down from 2.5% in 2024. Recent data showed that Thailand's economy expanded by 3% in the first half of this year. Separately, a deputy finance minister said on Wednesday that there is room for Thailand's central bank to cut interest rates further, as Reuters reported.