According to Jinshi Data, Capital Economics anticipates that the Bank of Thailand will cut interest rates again in December, with the policy rate expected to fall to 1.5% by the end of 2025.
Senior Asia Economist Leather highlighted that while short-term expectations for further rate cuts are low, Thailand's economic challenges and low inflation suggest that the conditions are ripe for additional policy easing. The Bank of Thailand may cut rates by a total of 75 basis points between now and the end of next year. Thailand's recovery from the pandemic has been one of the slowest in the region, and economic growth is expected to remain sluggish in the coming months, with inflationary pressures staying muted.
