The Bank of Thailand’s Monetary Policy Committee reduced the benchmark one-day repurchase rate by 25 basis points to 1.50% on 13 August 2025, marking its fourth cut in ten months and the lowest rate in over two years.

The decision, effective immediately, was unanimous among committee members.

The meeting was the final session chaired by Governor Sethaput Suthiwartnarueput, who will be succeeded by Vitai Ratanakorn on 1 October.

The next policy review is scheduled for 8 October.

Headline inflation fell 0.7% year-on-year in July, remaining below the central bank’s 1–3% target range for the fifth consecutive month.

Core inflation also stayed weak, reflecting broad-based price softness beyond volatile energy and food categories.

Household debt stood at approximately 87.4% of GDP in the first quarter of 2025, among the highest in Asia, limiting consumer spending power.

The central bank maintained its 2025 GDP growth forecast at 2.3% and export growth at 4%, but signalled a likely slowdown in the second half of the year.

Officials cited the impact of recently implemented U.S. tariffs on Thai goods, declining private consumption, reduced export orders, and heightened regional competition in short-haul tourism markets.

Revised quarterly estimates indicate growth of 1.3% in the third quarter and 0.9% in the fourth quarter of 2025.

The Thai baht eased slightly against the U.S. dollar following the announcement, while domestic equities remained largely steady.

In June, exports fell nearly 5% year-on-year and private consumption contracted by 0.3%.

This latest rate adjustment follows earlier cuts in November 2024, February 2025, and May 2025, continuing a cycle of monetary easing aimed at offsetting persistent economic headwinds.