Federation of Thai Industries praises MPC’s interest rate cut to support competitiveness and SMEs
The Federation of Thai Industries praises the MPC’s decision to cut interest rates, boosting business competitiveness and easing the financial burden on SMEs.
Kriengkrai Thiennukul, President of the Federation of Thai Industries (FTI), has expressed strong support for the Monetary Policy Committee’s (MPC) decision to cut the policy interest rate by 0.25%, bringing it down from 1.75% to 1.50%. He believes this is a timely and appropriate response to current economic conditions.
The reduction in interest rates is expected to enhance the competitiveness of businesses and ease the financial burden on borrowers, especially small and medium-sized enterprises (SMEs), which have been heavily impacted by rising costs due to US taxes and the stronger Thai baht compared to regional currencies.
“The private sector thanks the MPC for considering the economic situation and adjusting interest rates accordingly,” Kriengkrai said.
However, he expressed ongoing concern over the continuous appreciation of the baht, which directly affects exports and tourism. He urged the Bank of Thailand to introduce measures to manage the currency exchange rate in tandem with its interest rate policy. The BOT has continually stressed the need to maintain policy flexibility to deal with future uncertainties.
Kriengkrai also highlighted the private sector’s concern that delayed measures could result in missed opportunities, as the transmission of interest rate changes into the market takes several months.
“The MPC’s decision today is a crucial turning point that could determine Thailand’s economic direction for the remainder of 2025, amid both external and domestic challenges,” he added.
Sakkapop Panyanukul, Secretary of the MPC, stated that while Thailand’s economy is still expected to grow in 2025 and 2026 as previously forecast, the impact of recent US tax measures is likely to worsen structural issues and harm competitiveness.
The MPC’s decision to reduce the policy rate aims to create a more "accommodative" monetary environment to support businesses and ease financial pressures on vulnerable groups, he added.
