Bangkok’s central bank cut its key interest rate by a quarter point for the second time on Wednesday ( Apr 30 ) to help a struggling economy that is unsure of the impact of US tariffs.
The monetary policy committee at the Bank of Thailand approved a 25 basis point reduction to 1.75 per share, the lowest amount in two years, with a 5-2 vote. That was a comparable reduction at the earlier gathering in February.
The central bank cut its 2025 growth forecast to 2.0 % on Wednesday, down from the previous low of just over 2.5 percent seen in February and 2.9 % predicted in December.
In the second half of the time, it stated that there were potential problem risks to rise and US trade taxes, and that progress could only increase by 1 % this time due to the trade war.
In the “reference” scenario of the central bank, growth for the next year was seen at 1.8 % and 1 percent in the worst-case scenario.  ,
The US trade policies and possible retaliations from big economies will have a significant impact on the world’s financial, economic, and trade landscape, according to a statement.
The global market is likely to increase at a slower rate, and this method is only just beginning. It is anticipated that the condition will worsen.
If a lowering can’t be reached before a worldwide moratorium expires in July, Thailand is one of the Southeast Asian nations that are the hardest hit by US President Donald Trump’s measures. It will face a little larger-than-expected 36 per cent price.
Southeast Asia’s second-largest economy has laggarded local rivals for decades, growing only 2.5 % next year.  ,
LOWERED INFLATION AND Commerce Prediction
In a Reuters surveys, twenty out of 28 economics had predicted that this week’s essential price would be cut. The another eight had anticipated no plan change.
The central bank said it would keep an eye on the baht money and was willing to change interest rates as needed. After the price decision, the baht was not significantly altered.
The BOT’s forecast for 2025 headline inflation is revised to 0.5 %, down from the previous 0.1 % seen in December, and falls below its target range of 1 % to 3 %. It predicted core inflation to be 0.9 % this year, compared to the previous forecast of 1.0 percent.
The central banks decreased its estimates for international visitor arrivals from 39.5 million in December to 37.5 million this season.
According to Miguel Chanco, an analyst at Pantheon Macroeconomics,” we believe today’s lessening will be the last for the near future as the MPC ( monetary policy committee ) likely will follow a wait-and-see method with regards to the lingering tax uncertainty.”  ,