Thai central bank jolts markets slightly, cutting policy rate to 2%

Inflation remains low, allowing the BoT to focus on growth

Sixteen out of 26 economists polled by Reuters expected the Bank of Thailand to keep its policy interest rate unchanged at 2.25% following the monetary policy meeting on Feb. 26. © Reuters

APORNRATH PHOONPHONGPHIPHAT

February 26, 2025 17:45 JST

BANGKOK -- The Bank of Thailand (BOT) surprised the market by cutting its policy interest rate by a quarter point to 2.0% on Wednesday, as it looks to boost growth with inflation still in check.

Sakkapop Panyanukul, secretary of the BOT's Monetary Policy Committee said six out of seven committee members agreed to cut the rate to support growth, while one member voted to leave it unchanged.