Thailand holds rates, but more easing expected amid tariff risks

Thailand's central bank left its key interest rate unchanged on Wednesday, as expected, saying it was saving some policy ammunition if needed to support an economy expected to slow amid trade uncertainty and renewed domestic political turmoil.

- 

The central bank said growth was stronger than expected in the first half of the year, in part because of frontloading of export orders to beat US tariffs, but noted the outlook was uncertain and it was ready to cut rates as needed.

The Bank of Thailand's monetary policy committee voted 6 to 1 to keep the one-day repurchase rate at 1.75%, the lowest in two years. The BOT said its rate cuts in February and April were providing some support to the economy.

"The Thai economy is projected to slow down going forward, as a result of increasing risks to merchandise exports stemming from US trade policies as well as geopolitics and domestic factors," it said in a statement.

The stronger-than-expected start to the year saw the BOT lift its central-case growth forecast to 2.3% for 2025, almost matching last year’s 2.5% and more optimistic than some market analysts.