The Bank of Thailand cut key interest rates to their lowest level since 2022, providing support for the fragile economy at a time when the Thai baht is strong and political uncertainty looms over. The Bank of Thailand's Monetary Policy Committee voted unanimously on Wednesday to cut the 1-day repurchase rate by 25 basis points to 1.25%. This is the fifth time in 14 months that interest rates have been cut. Of the 24 economists surveyed, 23 predicted this result, and only 1 predicted that interest rates would remain unchanged. The Thai baht regained its gains after the announcement of the policy decision and is currently reported at 31.528 baht per US dollar. Further easing monetary policy may be critical for Southeast Asia's second-largest economy. The Thai economy has suffered a series of shocks, including US equal tariffs, severe flooding in southern provinces, and border clashes with Cambodia.

The Bank of Thailand cut key interest rates to their lowest level since 2022, providing support for the fragile economy at a time when the Thai baht is strong and political uncertainty looms over. The Bank of Thailand's Monetary Policy Committee voted unanimously on Wednesday to cut the 1-day repurchase rate by 25 basis points to 1.25%. This is the fifth time in 14 months that interest rates have been cut. Of the 24 economists surveyed, 23 predicted this result, and only 1 predicted that interest rates would remain unchanged. The Thai baht regained its gains after the announcement of the policy decision and is currently reported at 31.528 baht per US dollar. Further easing monetary policy may be critical for Southeast Asia's second-largest economy. The Thai economy has suffered a series of shocks, including US equal tariffs, severe flooding in southern provinces, and border clashes with Cambodia.