Bank of Thailand expected to cut rates as new governor takes helm

Published 11/08/2025, 09:58
Bank of Thailand expected to cut rates as new governor takes helm

Investing.com - The Bank of Thailand (BOT) is scheduled to hold its monetary policy meeting on Wednesday, August 13, with markets pricing in 43 basis points of cumulative cuts for the remainder of 2025.

The appointment of Vitai Ratanakorn as the next governor of the Bank of Thailand could shift the Monetary Policy Committee (MPC) toward a more dovish stance, according to Bank of America (NYSE:BAC) economist Pipat Luengnaruemitchai.

Bank of America maintains its forecast that the BOT will cut its policy rate to at least 1.00% over the next 12 months from the current 1.75%, with risks tilted toward even deeper reductions.

Soft private consumption, weak loan demand, and headline inflation tracking below target are the key factors supporting the case for a more accommodative monetary policy stance under the central bank’s new leadership.

The Thai central bank’s potential policy shift comes as part of a broader monetary easing cycle, with markets closely watching how aggressively the new governor will move to stimulate Thailand’s economy.

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