Thailand Signals Easing Cycle Near End After Surprise Rate Cut

The Bank of Thailand unexpectedly lowered its key interest rate and signaled that its easing cycle could soon draw to a close if the economic recovery gains sufficient momentum. Stocks rose while the baht erased earlier gains.

The central bank’s Monetary Policy Committee voted four to two on Wednesday to cut the one-day repurchase rate by 25 basis points to 1%, the lowest level since September 2022. Only three of 23 economists surveyed by Bloomberg had predicted the move, with the rest seeing no change. The meeting was attended by six members, with one seat on the committee still vacant.