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Thailand's Central Bank Pauses but Leaves Door Open to More Cuts, Says Nomura

BY MT Newswires | ECONOMIC | 06/26/25 07:03 AM EDT

07:03 AM EDT, 06/26/2025 (MT Newswires) -- The Bank of Thailand (BoT) left its policy rate unchanged at 1.75% in a 6-1 vote on Wednesday, in line with consensus expectations but against Nomura's forecast of a 25bps cut.

The policy statement stressed the BoT's concerns about "limited policy space" and as such, the importance of the "timing and effectiveness" of the cut.

Nomura believes this implies the BoT has left the door open to more cuts, also taking into account its guidance that it stands "ready to adjust monetary policy." The bank maintains its terminal policy rate forecast of 1.00%, premised on Nomura's view of a weakening economy, tightening financial conditions and rising deflation risks.

The bank still predicts the BoT to pause again in August before delivering two 25bp cuts in Q4 and another in Q1 2026, but acknowledges high uncertainty over the timing.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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