Thailand’s central bank has unanimously cut its policy interest rate by 0.25%, from 1.75% to 1.50%, to support vulnerable groups like SMEs and low-income households amid economic challenges. The move aims to improve credit access and cushion economic pressures, particularly as US tax measures threaten Thailand’s competitiveness.
MPC Secretary Sakkapop Panyanukul noted the decision is a proactive response to specific financial weaknesses, not a sign of overall economic decline. While further cuts are possible, the MPC recognizes limited policy space as rates approach historic lows, urging caution for future adjustments.