As of 2:11 PM (Bangkok time) on Wednesday, Thailand’s SET Index rose by 1.88%, or 28.06 points, to 1,518.46, with a trading value of THB 56.46 billion. The increase came after the Bank of Thailand (BOT), with four out of six committee members, voted to cut the policy rate by 0.25 percentage points from 1.25% to 1.00%.
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 a Reuters Poll, the Thai central bank is expected to 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 reduction anticipated as the U.S. Federal Reserve is also expected to cut its rates by a quarter point in its meeting on June 16-17. Meanwhile, the Bank of Thailand is next scheduled to meet on June 24.
Krungsri Securities (KSS) noted that the decision represents a “positive surprise” for the market, with every 25-basis-point cut potentially adding 50-60 points to the index. The brokerage anticipates a boost for “Yield Play” stocks, including hire-purchase firms like Muangthai Capital (MTC) and Krungthai Card (KTC), as well as power producers such as Gulf Development (GULF) and Global Power Synergy (GPSC).
Additionally, high-dividend stocks like Advanced Info Service (ADVANC) and companies with high debt levels, such as True Corporation (TRUE), CP All (CPALL), and Berli Jucker (BJC), are expected to benefit from the lower interest rate environment.
Krungsri further suggests that investment-linked stocks could see upside as capital flows into the economy are projected to accelerate. This includes industrial estate developers like Amata Corporation (AMATA) and WHA Corporation (WHA).
