BANGKOK: The Bank of Thailand (BoT) lowered its benchmark interest rate by 25 basis points to 1.75%—its second consecutive cut—as it downgraded 2025 growth expectations and warned of escalating risks from US tariffs.
The rate is now at its lowest in two years. The central bank revised Thailand’s 2025 GDP growth forecast to 2.0%, down from 2.5%, with a worst-case scenario projecting just 1.3% growth should US trade tensions intensify.
The BoT cited rising global economic uncertainty and said the US-led tariff hikes, including a looming 36% levy on Thai exports, could significantly reshape global trade flows.
Headline inflation is forecast to fall to 0.5% in 2025—below the BoT’s 1-3% target range—while foreign tourist arrivals are now expected at 37.5 million, down from 39.5 million.
While 20 of 28 economists polled had expected the rate cut, analysts believe this may be the final easing in the near term, as policymakers adopt a wait-and-see approach amid heightened geopolitical and economic uncertainty.–REUTERS
