Thai Baht Rises Despite Surprise Rate Cut

2026-02-25 09:26 By Czyrill Jean Coloma 1 min. read

The Thai baht edged higher to around 31 per dollar in late February, despite a surprise move by the Bank of Thailand to cut its interest rate.

At its February 2026 meeting, the central bank reduced the policy rate by 25 bps to 1%, defying market expectations of a hold.

It was the sixth reduction since October 2024, bringing the cumulative cut to 150 bps as authorities aim to support an economy weighed down by US tariff uncertainty, high household debt and a persistently strong baht.

US President Donald Trump recently announced plans to set global tariffs at 15% after a Supreme Court ruling that invalidated his tariff policy, lower than the 19% rate applied to Thailand.

Meanwhile, political developments have provided some investor relief.

Prime Minister Anutin Charnvirakul’s Bhumjaithai Party is expected to lead a new coalition government by April, following solid results in a general election earlier this month.

This outcome eased investor concerns about political instability.



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