Bank of Thailand cuts benchmark interest rate as tariffs impact outlook

Published 30/04/2025, 09:04
Bank of Thailand cuts benchmark interest rate as tariffs impact outlook

Investing.com -- The Bank of Thailand has reduced its benchmark interest rate in a move that was largely anticipated due to the uncertain economic outlook caused by tariffs.

The central bank’s monetary policy committee announced on Wednesday that it had voted five to two to decrease the policy rate from 2.00% to 1.75%. Two members of the committee voted to maintain the rate.

This decision came just before Moody’s Ratings revised Thailand’s economic outlook from stable to negative. The ratings agency cited the risk of further weakening in economic and fiscal strength as the reason for the downgrade.

Moody’s has also stated that U.S. tariffs could have a significant impact on global trade and economic growth, which could, in turn, affect Thailand’s open economy.

The agency stated that Thailand’s near-term growth is likely to be substantially impacted, both due to its export exposure to the U.S. and its role in regional value chains.

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