Thailand’s monetary policy should remain accommodative to support the economy and an easing would not significantly increase financial stability risks.
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Thailand’s monetary policy should remain accommodative to support the economy and an easing would not significantly increase financial stability risks, the minutes of the Bank of Thailand’s August 13 policy meeting showed on Wednesday.
At the meeting, the monetary policy committee voted unanimously to cut the one-day repurchase rate by 25 basis points to a near three-year low of 1.50%.
“Going forward, the Committee viewed that monetary policy should remain accommodative to support the economy,” the minutes said.
“At the same time, it was important to ensure macro-financial stability, while taking into account the limited policy space.”
The August cut was the fourth reduction in 10 months to support a sluggish economy grappling with U.S. tariffs and softer tourism.
At the review, the central bank said Southeast Asia’s second-largest economy was still expected to grow close to its forecasts of 2.3% for 2025 and 1.7% for next year. Last year’s growth of 2.5% lagged behind regional peers.
“Looking ahead, the economy was expected to moderate relative to the first half of the year, reflecting the impact of U.S. trade policies,” the minutes said.
“These measures would exacerbate structural challenges and weigh on Thailand’s competitiveness,” they added.
The next policy review is on October 8, and some economists expect a further rate cut.
