Recently, the international research institution Keio Macro released an interesting forecast: the Thai central bank's rate cuts may have just begun. They expect that by the end of 2026, Thailand's policy interest rate will decrease from the current 1.25% to 0.75%. This may seem like a simple policy adjustment for one country, but it reflects a broader trend of slowing global economic growth and more economies being forced into easing cycles.

**Why is Thailand compelled to cut interest rates?**

The data makes it clear. Thailand's GDP has been declining for three consecutive quarters, with private consumption and government spending both sluggish, and the growth outlook for next year also under pressure. In such an environment, the central bank can only stimulate the economy by releasing liquidity and encouraging credit. Keio Macro's assessment aims to show that this easing cycle is not a one-time policy adjustment but will be a cyclical change lasting for several years.

**How strong is this signal for the crypto market?**

Looking at Thailand alone, its direct size within the crypto ecosystem isn't large. But the transmission of policy signals cannot be ignored:

First, Southeast Asia entering a rate-cutting cycle means that idle funds within the region will be more proactive in seeking high-yield outlets. Global assets like Bitcoin and Ethereum will naturally become preferred destinations.

Second, the US and Europe have already begun easing, and now emerging economies are following suit. This will further reinforce market expectations of a "large-scale global liquidity shift." The medium- to long-term benefits for assets like Bitcoin are obvious.

Additionally, the low-interest-rate environment encourages cross-border asset allocation. Thai investors will be more actively engaging in overseas asset deployment through compliant crypto channels, which will undoubtedly increase trading platform activity.

In simple terms, a country's monetary policy shift often marks the beginning of reallocation of funds across the region or even globally.