BANGKOK, Thailand – Yanyong Thaicharoen, CEO of Economic and Sustainability Research at the SCB Economic Intelligence Center (SCB EIC), noted that the market expects the Bank of Thailand’s Monetary Policy Committee (MPC) to reduce interest rates twice this year. This expectation is supported by three main factors:
-Economic Stimulus: Growth is forecasted at 1.5-2.0% for 2025, with slowing momentum expected in the second half despite strong export performance in the first half.
-Low Inflation: Inflation remains subdued and recently turned negative, indicating economic slack.
-Household Debt Control: Financial institutions are cautious in lending, preventing household debt from rising, while lower rates will ease consumer debt burdens.
Kriangkrai Thianukul, Chairman of the Federation of Thai Industries (FTI), added that interest rate cuts would lower costs for businesses. He urged the MPC to set appropriate rates, especially amid a strong baht, suggesting flexible policies like those for the yuan to prevent exporters from facing competitive disadvantages.
