The Bank of Thailand has announced that the current policy interest rate of 2% is deemed 'robust' for the nation’s economic circumstances.

Governor Sethaput Suthiwartnarueput stated this position during a speech delivered earlier this week to the Japanese Chamber of Commerce, with a transcript released on March 14, 2025. The Bank of Thailand recently surprised the market with a rate cut from 2.25% to 2% in the preceding month.

In his remarks, Governor Sethaput outlined that the central bank considers factors such as growth, inflation, and financial stability when making decisions regarding interest rates.

He expressed confidence that a 2% rate is appropriate given the current economic landscape and stated that the Bank does not anticipate making frequent adjustments to rates.

For the year 2025, the bank projects the economy to grow slightly above 2.5%.

Governor Sethaput acknowledged that a growth rate of 2.5% is not sufficient for long-term prosperity and emphasized the importance of implementing sustainable growth solutions beyond mere short-term economic stimuli.

The Thai government has set a growth target of 3% for the current year and is pursuing this goal with stimulus initiatives valued at 148 billion baht, alongside other measures aimed at boosting economic activity.

As part of its analysis, the Bank of Thailand identified exports as a pivotal component of economic performance, forecasting a growth rate in exports that will be slower than 2024's rate of 5.8%.

The growth of consumption is projected to rise slightly above 2.5%, bolstered by an anticipated increase in foreign tourist arrivals, which is expected to reach approximately 39.5 million visitors, nearing pre-pandemic levels.

In terms of inflation, the Bank forecasts a rate of 1.1% for 2025, indicating that current inflation levels remain within the central bank’s target range of 1% to 3%, thus presenting no immediate cause for concern.

The next scheduled review of the interest rate is set to take place on April 30.