Thailand Cuts Interest Rate by 25 bps as Expected
2025-12-17 07:05
By
Chusnul Chotimah
1 min. read
The Bank of Thailand lowered its benchmark interest rate by 25 basis points to 1.25% at its December 2025 policy meeting, as widely expected.
The central bank has cut its key rate five times over the past year, for a total reduction of 125 basis points, to support a sluggish economy grappling with US tariffs, high household debt, and a strong baht.
The move brings the rate to its lowest level since December 2022.
On the economic outlook, the BoT expects GDP to grow by 2.2% and 1.5% in 2025 and 2026, respectively.