Thailand Interest Rate

The Bank of Thailand unexpectedly reduced its key interest rate by 25 basis points to 2% during its February 2025 meeting, marking its lowest level since July 2023. The decision aimed to better align monetary conditions with prevailing economic trends, inflation, financial system stability, and to address emerging downside risks. Thailand’s annual inflation rate rose to an eight-month high of 1.3% in January 2025 from 1.2% in December 2024, below the central bank’s target range of 1% to 3%. The headline inflation is expected to stay near the lower bound of the target range due to supply-side factors, including falling global crude oil prices and strong price competition from imported products. Meanwhile, Thailand’s GDP grew 3.2% year-on-year in Q4 2024, up from 3% in the previous quarter but below the 3.9% forecast. Looking ahead, growth is expected to slow due to structural issues in manufacturing and increased competition from imported products.