BANGKOK (Reuters) -Thailand’s central bank cut its key interest rate by a quarter point for a second consecutive meeting on Wednesday, in a move to support an underperforming economy facing uncertainty over steep U.S. tariffs.
The Bank of Thailand’s monetary policy committee voted 5-2 to reduce the one-day repurchase rate by 25 basis points to 1.75%, the lowest level in two years. That followed a similar reduction at the previous meeting in February.
Twenty of 28 economists in a Reuters poll had predicted the key rate would be cut this week. The other eight had expected no policy change.
The BOT on Wednesday cut its growth forecast for 2025 to 2.0%, down from just above 2.5% seen in February and 2.9% predicted in December. It said there were downside risks to growth and U.S. trade tariffs could weigh in the second half of the year.
Southeast Asia’s second-largest economy has lagged regional peers for years, growing just 2.5% last year.
The central bank said it was ready to adjust interest rates as appropriate, and would closely monitor the baht currency. The baht was unchanged after the rate decision.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Editing by Martin Petty)
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