MPC meeting, 17 Dec 2025: Unanimous vote to lower policy rate by 0.25% to 1.25% as expected; one more cut anticipated in 2026 (Business Brief No.4227)

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At its meeting on 17 December 2025, the Monetary Policy Committee (MPC) voted unanimously to cut the policy rate by 0.25 percent to 1.25 percent, in line with KResearch’s expectation. The decision reflects a clearer slowdown and heightened risks to the Thai economy, lower inflation that warrants close monitoring of deflation risks, and the Baht that has appreciated faster than fundamentals and regional peers, while overall financial conditions remain tight.
KResearch expects the MPC to cut the policy rate once more in the first half of 2026, bringing it down to 1.00 percent as the Thai economy in 2026 is projected to soften relative to this year. The scope for policy rate cuts below 1 percent remains limited unless there is a material change in the economic outlook. The MPC continues to prioritize appropriate timing, policy effectiveness, and the preservation of policy space.

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