Bank of Thailand Cuts Interest Rates for First Time in Four Years

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Bank of Thailand Cuts Interest Rates for First Time in Four Years

The Bank of Thailand (BoT) has cut its key interest rate for the first time in four years, reducing it by 25 basis points to 2.25%, following government pressure to stimulate the economy. The surprise move contrasts with economists' expectations, as inflation remains low and economic growth sluggish. The Thai Chamber of Commerce welcomed the decision, hoping it would ease business costs, especially with a strong baht affecting exports. However, BoT Governor Sethaput Suthiwartnarueput emphasized that rate cuts alone won't drive significant growth, citing the need for structural reforms and caution due to high household debt levels.