Rate Cut: The Bank of Thailand reduced its benchmark interest rate by 25 basis points to 1.75%, the second cut this year.
Reason: To support the economy amid rising global uncertainty, especially new U.S. tariffs and weakening tourism.
Growth Forecast: 2025 GDP forecast lowered from 2.5% to 2.0%. In a worst-case scenario, growth could fall to 1.3%.
Inflation: Expected at 0.5% for 2025, below the target range of 1–3%.
Tourism: Tourist arrivals revised downward to 37.5 million (from 39.5 million), partly due to a Myanmar earthquake.
Credit Rating: Moody’s downgraded Thailand’s credit outlook from stable to negative.
Policy Outlook: The BoT is cautious about further rate cuts due to limited policy space.
