Thailand’s central bank has cut its benchmark rate to 1.50 percent and analysts now broadly expect the easing cycle to continue well into 2026 as the economy faces headwinds.

Earlier this year, the Monetary Policy Committee made four cumulative cuts totaling 100 basis points to counter slowing growth, weak domestic demand, export pressures and negative inflation.

Deputy Governor Piti Disyatat has emphasized that further cuts would hinge on a “significant material deterioration” in the growth outlook.

However, research groups such as UOB and DBS are projecting additional 25-basis-point reductions later in 2025 and into the first quarter of 2026, which could bring the terminal policy rate down toward 1.00 percent.

Also, economists and market watchers are suggesting that the Bank of Thailand explore more unconventional tools—such as quantitative easing—to bolster stimulus if interest-rate cuts become less effective.

Meanwhile, the central bank is preparing for leadership transition with Vitai Ratanakorn set to become governor in October, and the new Monetary Policy Committee under his leadership is expected to adopt a dovish bias to sustain growth support.

With inflation remaining well below the target band and downside risks from U.S. tariffs and weak consumption mounting, the extension of an accommodative monetary stance is fast becoming the consensus forecast among analysts.