Politics12/17/2025•Bloomberg

Thailand and Indonesia Eye Looser Monetary Policy Into Rocky 2026

Thailand and Indonesia Eye Looser Monetary Policy Into Rocky 2026

In the face of economic challenges, Thailand and Indonesia are considering more accommodative monetary policies as they enter 2026. Both Southeast Asian nations are grappling with domestic political instability, investor skepticism, and the impact of former U.S. President Donald Trump's tariffs. Thailand and Indonesia, two of the region's largest economies, are leaning towards loosening their monetary policies to navigate these rocky conditions. This shift aims to stimulate their economies and provide relief amid the prevailing uncertainties. The article highlights the complex economic landscape these countries are navigating, with a range of internal and external factors contributing to the need for a more flexible monetary approach. As they look to 2026, policymakers in Thailand and Indonesia are prioritizing measures to support their economies and mitigate the challenges they face.

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