(Thailand, 15th) — The International Monetary Fund (IMF) points out that Thailand needs a “carefully calibrated” policy mix to support its slowing economy, and urges Thailand to provide targeted fiscal support, while further easing monetary policy.
According to Bloomberg, the IMF said in its latest Article IV consultation that although monetary policy adjustments should depend on economic data, there is still room for further monetary easing since real interest rates remain high even after policy rate cuts. The organization noted that fiscal and monetary policies could help to some extent, but reversing weak economic growth will also require structural reforms.
The Monetary Policy Committee of the Bank of Thailand voted unanimously in December to cut the overnight repo rate by 25 basis points to 1.25%, marking the fifth rate cut in 14 months. The Monetary Policy Committee will hold a meeting on February 25 to discuss monetary policy decisions.
A statement issued by the Bank of Thailand said that the Thai authorities basically agree with the IMF’s assessment and reiterate their commitment to prudent macroeconomic management to support economic recovery.
Due to escalating external headwinds and weakening domestic demand, Thailand’s GDP growth in 2026 is expected to slow to 1.6% from 2.1% last year. Inflation is expected to remain moderate, averaging about 0.4% in 2026, and will strengthen gradually thereafter.
The Monetary Policy Committee of the Bank of Thailand voted unanimously in December to cut the overnight repo rate by 25 basis points to 1.25%, marking the fifth rate cut in 14 months. The Monetary Policy Committee will hold a meeting on February 25 to discuss monetary policy decisions.
A statement issued by the Bank of Thailand said that the Thai authorities basically agree with the IMF’s assessment and reiterate their commitment to prudent macroeconomic management to support economic recovery.
Due to escalating external headwinds and weakening domestic demand, Thailand’s GDP growth in 2026 is expected to slow to 1.6% from 2.1% last year. Inflation is expected to remain moderate, averaging about 0.4% in 2026, and will strengthen gradually thereafter.