Bank of Thailand's Dovish Policy Hold Likely a Temporary Pause -- Market Talk

Dow Jones
Jun 26, 2025

0229 GMT - The Bank of Thailand's dovish monetary-policy hold on Wednesday marks a temporary pause in its easing cycle, DBS Group Research's Chua Han Teng says in a commentary. BOT's Monetary Policy Committee continued to express a cautious economic outlook in 2H and into 2026, the senior economist notes. Thailand's exports will face U.S. tariffs' headwinds in 2H 2025. Private consumption will likely ease owing to lower income and consumer confidence, while recovery in foreign tourism to Thailand will probably be weaker. Also, domestic political uncertainty, if protracted, would dent business confidence and hamper fiscal policy. DBS expects the BOT to cut its policy rate further to 1.50% in 2H. (ronnie.harui@wsj.com)

 

(END) Dow Jones Newswires

June 25, 2025 22:29 ET (02:29 GMT)

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