Thailand cuts key rate to near 3-year low as growth sputters

Thailand's central bank lowered its policy rate to a near three-year low on Wednesday to boost a slowing economy grappling with US tariffs, falling prices and weak foreign tourist arrivals, with further policy easing seen later this year.

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As widely expected, the monetary committee unanimously cut the one-day repurchase rate by 25 basis points to 1.508, the lowest since late 2022. It was the fourth reduction in 10 months.

The economy was expected to expand this year and next, close to earlier assessments of 2.3% and 1.7%, respectively, but US trade policies would exacerbate structural problems and weaken competitiveness, with small businesses especially vulnerable, the Bank of Thailand said.

"The committee views that monetary policy should be accommodative going forward to support the economy," it said.

This year's growth forecast has some upside from a surge in exports, assistant governor Sakkapop Panyanukul told a press conference after Wednesday's decision.