The Bank of Thailand has voted 4 to 2 to cut the policy rate by 0.25 percentage point from 1.25 to 1.00 percent, effective immediately (corrected).
The BOT last reduced its benchmark interest rate by 25 basis points, setting it at 1.25% during its December 2025 meeting in a unanimous decision. Improved fourth-quarter economic output has lessened immediate pressure for further easing. For the October-December period, Thailand’s gross domestic product expanded 2.5% year over year, propelled by increased domestic consumption and investment.
According to Reuters Poll, the Thai central bank will maintain its rate at 1.25% in the February 2026 meeting. The only cut this year is expected to come in the second quarter with a 25 basis point cut as the Federal Reserve is expected to cut its rates by a quarter point in the meeting on 16-17 June. Meanwhile, the Bank of Thailand will convene its meeting on 24 June.
