The Bank of Thailand has announced that the Monetary Policy Committee (MPC) has voted to cut Thailand's policy rate by 0.25 percentage points, from 1.75% to 1.50%, effective 13 August 2025.

This policy rate reduction is designed to maintain price stability, support sustainable economic growth, and preserve financial stability in response to several key factors:
1. U.S. Trade policies, which are expected to slow Thailand’s economic growth in the second half of the year, while potentially exacerbating existing structural problems and weakening the country’s competitiveness;

2.Subdued headline inflation with limited price declines across goods and services;

3. Negative credit growth driven by increased credit risks, especially affecting SMEs and low-income households.

The MPC's decision reflects a proactive approach to addressing these economic headwinds while supporting Thailand's broader macroeconomic objectives.