Thailand’s central bank unexpectedly cut its key interest rate by 25 bps to 2% in February 2025, the lowest since July 2023. The rate cut aimed to align monetary policy with economic conditions, inflation, and financial stability, while addressing downside risks. Thailand’s inflation rose to 1.3% in January, still within the central bank’s target range but below expectations. GDP grew 3.2% YoY in Q4 2024, slightly above the prior quarter but below the 3.9% forecast. Growth is expected to slow due to structural manufacturing issues and increased competition from imports.