The Bank of Thailand unexpectedly cut its key interest rate for the first time in four months, acting after disappointing growth data and public calls for lower borrowing costs from both the prime minister and the International Monetary Fund.
The Bank of Thailand (BOT) implemented an unexpected rate cut, lowering the one-day repurchase rate by a quarter point to 2%, signaling a cautious approach to future reductions to preserve its limited policy space. This move, described as neutral, aims to address current challenges without rushing further cuts, especially amid global uncertainties. The BOT expects slower economic growth, influenced by structural issues and external trade risks, while noting inflation remains within target. The next rate meeting is scheduled for April 30, with potential leadership changes possibly affecting future policy.
