Bangkok: The Central Bank of Thailand has reduced its key interest rate for a quarter for a second consecutive meeting on Wednesday, April 30, in a decision to support an underperformative economy faced with uncertainty on high American rates.
The Monetary Policy Committee of the Banque of Thailand voted 5-2 to reduce the buyout rate of a day by 25 base points to 1.75%, the lowest level in two years. This followed a similar reduction at the previous meeting in February.
On Wednesday, the central bank reduced its growth forecasts for 2025 to 2.0%, against just over 2.5% seen in February and 2.9% scheduled for December.
He said there were risks lowering growth and that US trade rates could weigh in the second half of the half, and if the trade war increased, growth could only be 1.3% this year.
The growth next year was observed at 1.8% in the “reference” scenario of the central bank and 1% in its worst scenario.
“American trade policies and potential reprisals of major economies will lead to significant changes in the global economic, financial and commercial landscape,” he said in a statement.
“This process is only just beginning and subject to high uncertainties, the global economy is likely to grow at a slower rate. The situation should be prolonged.”
Thailand is one of the nations of Southeast Asia the hardest affected by the measures of the American president Donald Trump, facing a price of 36% much more important than expected if a reduction cannot be negotiated Before the expiration of a global moratorium in July.
The second economy of Southeast Asia has been late for regional peers for years, increasing only 2.5% last year.
Inflation, lowered tourism forecasts
Twenty of the 28 economists in a Reuters survey predicted that the key rate would be reduced this week. The other eight did not expect any change in politics.
The central bank said that it was ready to adjust interest rates, if necessary, and would closely monitor the Baht currency. The Baht was little changed after the rate decision.
The bot lowered its inflation forecasts in 2025 to 0.5%, against 1.1% observed in December and below its target beach from 1% to 3%. He predicted central inflation at 0.9% this year against 1.0% given earlier.
The central bank reduced its projections for the arrivals of foreign tourists to 37.5 million this year, against 39.5 million views in December.
“We believe that today's relaxation will be the last in the foreseeable future, because the MPC (Monetary Policy Committee) will probably adopt a waiting approach with regard to persistent tariff uncertainty,” said Miguel Chacco, economist at Pantheon Macroeconomics.
