Thai Central Bank unexpectedly cuts its rate by 25bps to 1.00% (exp. a hold at 1.25%); 4-2 voted in favour of the cut; says downside risks to headline inflation are expected to increase relative to previous assessment

Thai Central Bank unexpectedly cuts its rate by 25bps to 1.00% (exp. a hold at 1.25%); 4-2 voted in favour of the cut; says downside risks to headline inflation are expected to increase relative to previous assessment.

The Thai Central Bank's unexpected rate cut signals a more accommodative policy stance amid rising downside risks to inflation, which diverges from prior expectations of a hold. This shift could influence not only domestic rates but also create ripple effects across regional currencies and fixed income, as investors reassess the Thai economic outlook and potential for further monetary easing.