Overview

• The monetary policy committee unanimously trimmed the one-day repurchase rate by 25 basis points to 1.50%, its fourth cut in 10 months and lowest level since mid-2023.
• Officials warned that weaker short-haul tourism, high household debt and ongoing uncertainties over U.S. tariffs could weigh on private consumption and exports.
• Headline inflation fell 0.7% year-on-year in July, marking a fifth consecutive month below the 1–3% target range and underscoring the need for easier policy.
• The baht slid about 0.1% after the announcement while Thai equities remained largely unchanged, indicating a muted market response to the decision.
• Outgoing governor Sethaput Suthiwartnarueput chaired his final meeting and incoming governor Vitai Ratanakorn, who takes office October 1, has signalled continued support for rate cuts.