Nomura expects further policy easing from the Bank of Thailand, maintaining its forecast for the policy rate to fall to 1% despite the central bank holding steady at 1.75% in its latest meeting.

The BOT's decision was in line with market expectations, but against Nomura's call for a quarter point cut.

Nomura anticipates two 25 basis points cuts in the fourth quarter, and another in early 2026, due to weakening growth, tighter financial conditions, and deflation risks.

The Bank of Thailand is expected to pause again in August before resuming its easing cycle later in the year, Nomura said.