Bank of Thailand Signals Limited Room for Further Rate Cuts Amid Economic Recovery

The Bank of Thailand (BOT) is forecasting a positive economic turnaround in the fourth quarter of 2025, following a 0.6% contraction in the previous quarter, the first decline in 11 quarters. BOT Deputy Governor Piti Disyatat piti disyatatannounced on January 6, 2026, that while the economy is poised for recovery, the central bank faces significant constraints in further reducing interest rates. This comes after the BOT has already cut rates by 125 basis points since October 2024, bringing the current rate to 1.25%.