Businessperson Urges Policy Rate Cut Below 1% to Ease Debt

Thansettakij•Economy•13h ago

Reader Briefing

Business representatives provide differing views on the Monetary Policy Committee's decision to maintain the policy interest rate at 1%.

•The Monetary Policy Committee unanimously voted to keep the policy interest rate at 1% per year on August 26, 2026.
•Surapong Paisitpattanapong suggests reducing the rate below 1% to reduce the burden on citizens facing high household debt.
•Sunthorn Sathaporn states that the current 1% rate is already low and emphasizes the importance of credit accessibility over further cuts.

Overview

•On August 26, 2026, the Monetary Policy Committee voted unanimously to maintain the policy interest rate at 1% per year.
•The Monetary Policy Committee based the decision on the fact that the Thai economy is growing at a low level and recovery is not widespread.
•Surapong Paisitpattanapong noted that Thai household debt remains at a level higher than 80% of GDP.
•Surapong Paisitpattanapong argued that the 1% policy rate is an Overnight Interbank Rate and does not reflect the actual borrowing costs for citizens and businesses.
•Surapong Paisitpattanapong stated that reducing interest rates would allow citizens to have more money to pay down principal debt more quickly.
•Surapong Paisitpattanapong warned that continued low economic growth may cause banks to be more strict with loans, particularly for SMEs.
•Sunthorn Sathaporn expressed that the decision to maintain the rate at 1% is not negative news as the rate is already low.
•Sunthorn Sathaporn noted that the real estate sector has an Economic Multiplier linked to construction materials, labor, and the financial sector.

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Key Quotes

Sunthorn Sathaporn

"Today we should not view interest rate cuts alone as a magic pill that will immediately revive the real estate market, because current market problems are not limited to interest rates."

วันนี้เราไม่ควรมองว่าการลดดอกเบี้ยเพียงอย่างเดียวจะเป็นยาวิเศษที่ทำให้ตลาดอสังหาริมทรัพย์ฟื้นทันที เพราะปัญหาของตลาดในปัจจุบันไม่ได้มีเฉพาะเรื่องดอกเบี้ย

Key Entities

Organization

Monetary Policy Committee(คณะกรรมการนโยบายการเงิน)

The body that voted unanimously to maintain the policy interest rate at 1% per year.

Federation of Thai Industries(สภาอุตสาหกรรมแห่งประเทศไทย)ℹ️

The organization to which the Automotive Industry Group belongs.

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The institution whose concerns regarding inflation may be reflected in the 1% interest rate.

Housing Business Association(สมาคมธุรกิจบ้านจัดสรร)

The association led by Sunthorn Sathaporn.

Person

Surapong Paisitpattanapong(สุรพงษ์ ไพสิฐพัฒนพงษ์)

Advisor to the Chairman of the Automotive Industry Group and spokesperson for the Automotive Industry Group of the Federation of Thai Industries.

Sunthorn Sathaporn(สุนทร สถาพร)

President of the Housing Business Association.