BoT poised to cut policy rate to 1.75%

K-Research predicts quarter point drop

- SOMRUEDI BANCHONGDUANG

The Bank of Thailand (BoT) is expected to slash its policy rate by 0.25 percentage points tomorrow, amid slower economic growth primarily impacted by the US's tariff policies.

Kasikorn Research Center (K-Research) forecasts that the central bank’s Monetary Policy Committee (MPC) will lower the policy rate by a quarter point at its meeting tomorrow, bringing it down from 2% to 1.75%.

This outlook is based on increasing economic headwinds facing the Thai economy for the remainder of the year.

Key risks include the earthquake that struck in late March, coupled with escalating economic pressures from Washington’s tariff hikes, the global economic slowdown, weaker than expected tourist arrivals from China and South Korea, and a loss of domestic economic momentum.

"Given the prevailing headwinds, we expect the Bank of Thailand will cut the policy rate at least once more in the second half of the year," K-Research noted.