Core Viewpoint - The Bank of Thailand has lowered its policy interest rate by 25 basis points to 1.50%, marking the lowest level since February 2023, driven by weak domestic demand and external pressures such as U.S. tariffs [1][2][3] Group 1: Monetary Policy Actions - The Monetary Policy Committee (MPC) unanimously decided to reduce the overnight repurchase rate by 25 basis points, making it the fourth rate cut in ten months [2] - The current interest rate is the lowest since February 2023, indicating a shift towards a more accommodative monetary policy to support economic growth [2][4] Group 2: Economic Conditions - Analysts highlight ongoing deflationary pressures, with Thailand's Consumer Price Index (CPI) declining by 0.7% year-on-year in July, remaining below the central bank's target range for five consecutive months [3] - The core inflation rate is weakening, reflecting substantial domestic demand weakness [3] - The tourism sector, a critical component of Thailand's economy, is showing signs of contraction, which could further impact economic growth [3] Group 3: External Influences - U.S. tariffs, although reduced from an initial proposal of 36% to 19%, continue to directly impact small and medium-sized enterprises in Thailand [3] - The likelihood of a Federal Reserve rate cut in September has risen to 90%, prompting Thailand to adopt a loose monetary policy to mitigate capital outflows and buffer the impact of U.S. tariffs on export-oriented businesses [3] Group 4: Future Outlook - The Bank of Thailand warns of a significant economic slowdown in the second half of the year, with expectations of two more rate cuts this year due to moderate price pressures and weak growth prospects [4] - Current interest rates are at a two-year low, suggesting limited room for further cuts [4]
又一国央行,降息
Zhong Guo Ji Jin Bao·2025-08-13 13:37