BANGKOK, Aug 13 (TNA) – The Bank of Thailand’s Monetary Policy Committee (MPC) unanimously voted on Wednesday to cut its key policy rate by 0.25 percentage points, lowering it to 1.50% from 1.75%, effective immediately.
The committee cited the need for a more accommodative monetary policy to address weakening economic conditions, particularly the vulnerability of small and medium-sized enterprises (SMEs).
While the Thai economy’s overall growth forecast for 2025 and 2026 remains close to previous assessments, the MPC noted that U.S. trade policies and a decline in short-haul tourist arrivals are expected to slow momentum in the second half of the year. The report stated that these factors will weaken competitiveness and affect the income of SMEs and self-employed workers, while private consumption is projected to be subdued due to waning consumer confidence.
According to Sakkapop Panyanukul, the MPC’s Secretary, headline inflation remains low due to supply-side factors, such as favorable weather boosting food supplies and a downward trend in global energy prices. However, core inflation remains stable, indicating that price declines have not been widespread.
The central bank’s decision is aimed at ensuring that financial conditions are favorable for businesses to adjust and to help alleviate the burden on vulnerable economic groups. The committee also highlighted the need to closely monitor the impact of transshipment tariffs and competition from imported goods. -819 (TNA)
