Thailand’s central bank unexpectedly lowered its key interest rate by 25 bps to 2.25%, marking the first rate cut since early 2020 and a move long endorsed by the government. The decision was made amid a sluggish economy and inflation remaining below the lower end of its target range between 1% to 3%. The Thai economy is expected to grow close to the projected 2.7% in 2024 and 2.9% in 2025.