On Wednesday, Thailand’s central bank unexpectedly lowered its interest rate to help boost the sluggish economy and address low inflation. The rate was cut by 25 basis points to 2.25%, down from a decade-high of 2.50% since September 2023.
Only 4 out of 28 economists predicted this cut, while 24 expected no changes.
This is the first reduction since a previous rate hike last September.
The Bank of Thailand revised its 2024 economic growth forecast to 2.7%, up from 2.6%, and expects 2.9% growth in 2025, slightly down from 3.0%.
The World Bank projects a 2.4% growth for this year and 3.0% for next year.
Thailand’s economy, the second largest in Southeast Asia, struggles with high debt and weak exports.
The central bank also adjusted its headline inflation forecast for 2024 to 0.5% from 0.6%, below the target range of 1% to 3%.
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