MPC Maintains Policy Interest Rate at 1.00%

Khaosod•Economy•16h ago

Reader Briefing

The Monetary Policy Committee unanimously voted to keep the policy interest rate at 1.00% per year on August 26, 2026.

•The Monetary Policy Committee maintained the policy rate at 1.00% due to low and uneven economic growth.
•SME loans continue to contract despite overall loan expansion driven by large businesses.
•Inflation is lower than previously estimated but is expected to rise temporarily until the first quarter of 2027.

Overview

•On August 26, 2026, the Monetary Policy Committee held a meeting to determine the policy interest rate.
•The Monetary Policy Committee unanimously resolved to maintain the policy interest rate at 1.00% per year.
•The Monetary Policy Committee cited low and uneven economic growth and contracting SME loans as reasons for the decision.
•Thai economic growth is receiving momentum from the technology and artificial intelligence cycle, but this benefit is limited and relies heavily on imports.
•Inflation for the years 2026 and 2027 is lower than previously estimated due to global energy prices.
•The Monetary Policy Committee warned of risks from geopolitical tensions in the Middle East and international trade barriers.
•Total loans have expanded primarily through large business loans, while financial institutions remain cautious about lending to high-risk SME debtors.
•The Monetary Policy Committee will monitor the debt repayment ability of SMEs and vulnerable household groups.

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Key Quotes

Monetary Policy Committee

"The committee believes that implementing monetary policy at a relaxed level, coupled with targeted financial measures, helps support economic recovery."

คณะกรรมการเห็นว่าการดำเนินนโยบายการเงินในระดับผ่อนคลาย ควบคู่กับมาตรการทางการเงินเฉพาะจุด มีส่วนช่วยสนับสนุนการฟื้นตัวของเศรษฐกิจ

Key Entities

Organization

Monetary Policy Committee(กนง.)

The committee that resolved to maintain the policy interest rate at 1.00%.

Federal Reserve(ธนาคารกลางสหรัฐฯ)ℹ️

The US central bank whose monetary policy direction affects the volatility of the Thai Baht.

Person

Don Nakhornthap(นายดอน นาครทรรพ)

Secretary of the Monetary Policy Committee.

Place

Middle East(ตะวันออกกลาง)ℹ️

A region where war and geopolitical instability are being monitored for their impact on the Thai economy.