Bank of Thailand to cut rates as US economy slows down

The Bank of Thailand is expected to cut its policy rate by up to 1.5 percentage points next year, influenced by a projected slowdown in the US economy.

• The US economy is expected to slow down, prompting the Bank of Thailand to potentially cut its policy rate by up to 1.5 percentage points in 2025.
• The Federal Reserve may aggressively cut interest rates to counter the impact of high rates on US consumers, while avoiding a recession.
• The Bank of Thailand is expected to adjust its policy rate by a total of one percentage point in 2025 to alleviate pressure on Thai consumers and debtors, with potential impacts on various sectors.

KGI Securities predicts that this move will help transition the US to more normal growth, with the Federal Reserve potentially cutting interest rates more aggressively. In Thailand, the Monetary Policy Committee is expected to ease its tight bias by cutting the policy rate by a total of one percentage point in 2025.

The report also discusses the potential impact of rate cuts on various sectors, highlighting both positive and negative effects.