At its August 13 meeting, the MPC unanimously resolved to cut the policy rate by 0.25% to 1.50%; at least one more reduction is anticipated during the rest of 2025 (Business Brief No.4184 Full Ed.)

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At its meeting on August 13, 2025, the Monetary Policy Committee (MPC) unanimously resolved to cut the policy rate by 0.25 percent to 1.50 percent, citing increased vulnerability in Thailand’s economy, particularly for SMEs, amid the impacts of US tariff measures and the decrease in tourist numbers. Additionally, the policy rate cut could help reduce financial costs and alleviate debt burdens for vulnerable sectors to some extent.
Moreover, the MPC placed greater emphasis on financial system stability risks, noting that the Thai Baht’s appreciation against the US Dollar compared to regional currencies may have implications for economic activity. The committee also flagged credit risks affecting loan contraction while loan quality continues to deteriorate.
KResearch expects the MPC to cut the policy rate at least once more during the two remaining meetings this year, as Thailand’s economy is projected to slow significantly during the same period. This aligns with the MPC’s recent statement that monetary policy should remain accommodative to support the economy.

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