Thai central bank cuts key rate by 25 bps, as expected 


File pix — Reuters

BANGKOK: Thailand's central bank lowered its key interest rate by a quarter point on Wednesday, its fourth cut in 10 months as it looks to support a sluggish economy grappling with negative inflation and the impact of U.S. tariffs.

The Bank of Thailand's monetary policy committee unanimously voted to reduce the one-day repurchase rate by 25 basis points to 1.50%, the lowest in more than two years.

The BOT had held the key rate at its June meeting following back-to-back cuts at reviews in February and April. It had also cut rates in October last year. Twenty-three of 28 economists in a Reuters poll had predicted a quarter-point reduction this week. The other five had expected no rate change.

Among those who provided a longer-term outlook on rates in the poll, 19 of 26 saw the policy rate at 1.25% by the end of 2025, seven said 1.50% and one forecast 1.00%. - Reuters

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