Thailand’s central bank cuts key rate by 25 bps

Published Wed, Apr 30, 2025 · 03:46 PM

Thailand’s central bank cut its key interest rate by a quarter point for a second consecutive meeting on Wednesday (Apr 30), in a move to support an underperforming economy facing uncertainty over steep US tariffs.

The Bank of Thailand’s monetary policy committee voted 5-2 to reduce the one-day repurchase rate by 25 basis points to 1.75 per cent, the lowest level in two years. That followed a similar reduction at the previous meeting in February.

Twenty of 28 economists in a Reuters poll had predicted the key rate would be cut this week. The other eight had expected no policy change.

The BOT on Wednesday cut its growth forecast for 2025 to 2 per cent, down from just above 2.5 per cent seen in February and 2.9 per cent predicted in December. It said there were downside risks to growth and US trade tariffs could weigh in the second half of the year.

South-east Asia’s second-largest economy has lagged regional peers for years, growing just 2.5 per cent last year.

The central bank said it was ready to adjust interest rates as appropriate, and would closely monitor the baht currency. The baht was unchanged after the rate decision. REUTERS

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