FX.co ★ Thailand’s Monetary Policy Should Remain Accommodative

The Bank of Thailand (BoT) intends to maintain a supportive monetary policy to facilitate economic recovery, as outlined in the minutes from the central bank's policy meeting on October 8. The committee emphasized the need for a continued accommodative policy stance and highlighted that the effects of previous interest rate reductions are still influencing the economy. In a surprising decision, the monetary policy committee voted 5-2 to maintain the one-day repurchase rate at 1.50%. Over the past year, the central bank has reduced its key interest rate by a cumulative 100 basis points through four separate cuts to bolster an economy challenged by US tariffs, significant household debt, and a robust baht. The central bank has projected economic growth rates of 2.2% for this year and 1.6% for the next. During the first half of 2025, the economy grew by 3.0%. Last year's growth rate of 2.5% trailed behind that of other countries.