FX.co ★ Thailand Cuts Interest Rate by 25 bps as Expected

In its August 2025 meeting, the Bank of Thailand reduced its key interest rate by 25 basis points to 1.50%, marking the lowest point since February 2023, as anticipated by market analysts. In July 2025, Thailand experienced a 0.7% decline in annual consumer prices, which exceeded the predicted fall of 0.45% and represented a continued downturn from June's 0.25% decrease. This maintained inflation below the central bank's target range of 1%-3%. Projections for economic growth in 2025 and 2026 remain largely in line with previous estimates, hovering around 2.3% and 1.7%, respectively. During the first half of 2025, the economy benefitted from robust electronics exports, initial shipments to the US, and increased manufacturing output. However, growth is anticipated to decelerate in the second half due to changes in US trade policy and a decrease in short-haul tourist arrivals, intensified by rising regional competition. Nonetheless, the central bank expressed its unwavering dedication to a policy framework centered on maintaining price stability, promoting sustainable growth, and ensuring financial stability.