The International Monetary Fund (IMF) has stated that Thailand requires a combination of "precisely calibrated" policies to support its decelerating economy. The organization urged the implementation of targeted fiscal support alongside further monetary policy easing.

In its latest Article IV consultation report, the IMF noted that while monetary policy adjustments should remain data-dependent, real interest rates remain relatively high even after multiple rate cuts, indicating room for further loosening.

The report suggested that while fiscal and monetary policies can provide some support, structural reforms are still necessary to address the underlying weakness in growth.

The Bank of Thailand's Monetary Policy Committee unanimously decided in December to cut the one-day repurchase rate by 25 basis points to 1.25%, marking the fifth reduction in 14 months. The committee is scheduled to meet on February 25 to review its next monetary policy decision.

In a statement, Thai authorities largely agreed with the IMF's assessment and reaffirmed their commitment to prudent macroeconomic management to support economic recovery.