Thai Rate Pause Is Lifeline Saved for Turbulence Ahead, BOT Says

The Bank of Thailand’s decision to leave borrowing costs unchanged this week gives it a “monetary lifeline” to deal with challenges ranging from US tariffs and geopolitical tensions to domestic politics, according to Deputy Governor Piti Disyatat.

The central bank sees “limited room” available for easing its key rate, which at 1.75% is deemed slightly accommodative and below the neutral level, Piti said in an interview in Bangkok. With the full impact of the US tariff on global trade and the Thai economy to be felt from the second half of this year, policymakers see it as important to preserve some firepower, he said.