Thailand Policy Rate: BoT Holds at 1.75%
The Bank of Thailand held its policy rate steady at 1.75% today, a move designed to balance economic support with policy flexibility amidst global uncertainties. Key takeaways from the Monetary Policy Committee’s decision reveal a proactive approach despite projected slowdowns in late 2025 due to global factors impacting manufacturing and exports. gains in tourism revenues are offset by lagging arrival numbers, while credit quality for small businesses causes concern. The central bank carefully monitors its economic role, keeping Thailand’s financial stability in focus. This news, found with News directory 3, provides detailed insights into the factors shaping Thailand’s economic outlook, like subdued inflation. The committee remains committed to adjust based on evolving risks to ensure enduring economic growth. Discover what’s next.
Bank of Thailand Holds Rate steady Amid Economic Uncertainty
Updated June 25, 2025
Bangkok-Thailand’s Monetary Policy Committee (MPC) voted 6-1 to maintain the nation’s policy rate at 1.75% Wednesday. The decision reflects an effort to balance support for the Thai economy with the need to preserve policy adaptability amid ongoing global uncertainties. The central bank is carefully monitoring the economic role it plays.
While the Thai economy showed stronger-than-expected performance early in 2025, fueled by gains in manufacturing and exports, officials project a slowdown in the second half of the year. They cited U.S. tariffs, geopolitical tensions, and softening domestic consumption as key factors.
Despite increased tourism revenue driven by higher per-visitor spending, overall tourist arrivals have not met forecasts. Credit growth also continues to contract, particularly among small and medium-sized enterprises (SMEs) and lower-income households. Headline inflation is projected to remain subdued, largely due to energy and food prices.
The committee affirmed its commitment to an accommodative, yet cautious, policy stance. It stands ready to adjust its approach based on evolving risks to ensure price stability,enduring economic growth,and overall financial stability.
The Thai economy is projected to expand by 2.3 and 1.7 percent in 2025 and 2026, respectively. This year’s economic growth figure of 2.3 percent is partly due to stronger-than-expected outturn in the first quarter and leading economic indicators in the second quarter.
Maintaining the policy rate signals the Bank of Thailand’s intention to preserve monetary policy space while navigating a fragile economic environment. The decision highlights a cautious yet proactive approach to maintaining economic stability and financial stability.
Headline inflation is projected to remain subdued at 0.5 and 0.8 percent in 2025 and 2026, respectively, due to the energy and fresh food prices. Core inflation is projected to expand by 1.0 and 0.9 percent in 2025 and 2026, respectively.
What’s next
Looking ahead,the Bank of Thailand will continue to monitor global market volatility and domestic political stability,remaining prepared to adjust its monetary policy role as needed to support sustainable growth.