Bank of Thailand Cuts Interest Rate a Fourth Time – Currency Thoughts
Bank of Thailand Cuts Interest Rate a Fourth Time
August 13, 2025
As widely expected and by unanimous vote, the key interest rate of the Bank of Thailand was cut today by 25 basis points to 1.5%. The reduction marked the fourth such cut since October from 2.5%, which had been the peak since September 2023. This latest policy easing was undertaken even though, as noted in a released statement of explanation, growth prospects are pretty much unchanged before. The impetus for the action was instead the continuing sub-target inflation rate (-0.7% in July) and concerns about international trade tensions.
The Thai economy in 2025 and 2026 is projected to expand close to the previous assessment. Nevertheless, U.S. trade policies will exacerbate structural problems and weaken competitiveness. Monetary policy should be more accommodative to some extent to ensure that financial conditions are conducive to business adjustment and to help alleviate the burden of vulnerable groups.
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Thailand
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