27.08.202503:24:25UTC+00Monetary Policy Should Remain Accommodative: BoT Minutes

Thailand's monetary policy is advised to remain supportive to bolster the economy, with indications that further easing would not pose significant threats to financial stability, as revealed in the minutes from the Bank of Thailand's (BoT) policy meeting on August 13. The minutes emphasized the need to maintain macro-financial stability while considering the limited scope for policy adjustments. During this meeting, the monetary policy committee unanimously decided to lower the one-day repurchase rate by 25 basis points, bringing it to a nearly three-year low of 1.50%. This rate cut in August marked the fourth reduction within ten months, aimed at stimulating an economy struggling with US-imposed tariffs and a decline in tourism. The central bank forecasts economic growth at around 2.3% for 2025 and 1.7% for 2026, a decrease from the projected 2.5% in 2024. Recent figures indicate that Thailand's economy grew by 3% in the first half of this year.