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12 Dec 2024

Thai Economy

MPC Meeting, December 18, 2024: MPC is expected to maintain its policy rate at 2.25%, but may cut the rate twice next year (Business Brief No.4105 Full Ed.)

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MPC Meeting, December 18, 2024: MPC is expected to maintain its policy rate at 2.25%, but may cut the rate twice next year

  • At the upcoming Monetary Policy Committee (MPC) meeting slated for December 18, 2024, the MPC is expected to keep its policy rate steady at 2.25 percent, in a split vote. At its previous meeting in October, the MPC decided to cut the policy rate by 0.25 percent, viewing the action as bringing the rate to a neutral level consistent with economic risk, inflation, and financial stability.
  • In 2025, the MPC may reduce the policy rate two more times, due to heightened risks to the Thai economy in the coming year. Meanwhile, inflation in 2025 is expected to stay below the BOT’s target range of 1-3 percent.
  • However, the future direction of the MPC’s monetary policy, particularly the timing and magnitude of any interest rate cuts, remains highly uncertain. It will largely depend on incoming economic data, inflation, and financial stability along the way.

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Thai Economy