MPC Maintains Policy Rate at 1%

MGR Online•Economy•17m ago

Reader Briefing

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

•The Monetary Policy Committee (MPC) kept the policy rate at 1.00% to support economic recovery.
•The MPC viewed further rate cuts as potentially having limited results because capital is not reaching SMEs and vulnerable households.
•The MPC identified targeted measures and fiscal policy as more suitable for solving current economic problems than broad interest rate adjustments.
•Don Nakornthap, Secretary of the MPC, announced the results on August 26, 2026.

Overview

•Don Nakornthap announced the results of the Monetary Policy Committee meeting on August 26, 2026.
•The Monetary Policy Committee voted unanimously to maintain the policy interest rate at 1.00% per year.
•The Monetary Policy Committee believes a 1% rate provides sufficient easing and that further cuts might not be worth the trade-off.
•The Monetary Policy Committee noted that Thai economy growth is uneven and weak, though partially offset by technology exports and private investment.
•The Monetary Policy Committee views broad rate cuts as mainly benefiting large borrowers rather than SMEs and vulnerable households due to bank risk concerns.
•The Monetary Policy Committee is monitoring inflation risks in Q4 2026 and Q1 2027 driven by El Nino and supply-side costs.
•Don Nakornthap stated that raising interest rates may not be correct given the fragile state of the economy.
•The Monetary Policy Committee suggests a Policy Mix involving targeted financial measures and fiscal policy to address low growth and high household debt.

Full article content is available on the original source.

Read on MGR Online (Thai Version)View in Google Translate

Source: MGR Online (Original)

View Original Article

Key Quotes

Don Nakornthap

"The issue of low economic growth and the opportunity to reduce interest rates was a significant point that the committee spent considerable time discussing in today's meeting."

ประเด็นการขยายตัวของเศรษฐกิจในระดับต่ำ และโอกาสในการลดอัตราดอกเบี้ยนั้น เป็นประเด็นสำคัญที่คณะกรรมการใช้เวลาอภิปรายเรื่องดังกล่าวค่อนข้างมากในการประชุมวันนี้

Don Nakornthap

"Under economic conditions that are still quite fragile, raising interest rates may not be the correct approach."

ภายใต้ภาวะเศรษฐกิจที่ยังค่อนข้างเปราะบาง การขึ้นดอกเบี้ยอาจไม่ใช่แนวทางที่ถูกต้อง

Key Entities

Organization

Monetary Policy Committee(กนง.)

The committee that voted to maintain the policy interest rate at 1.00% per year.

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The institution that maintains room to reduce interest rates if a crisis occurs.

Person

Don Nakornthap(ดอน นาครทรรพ)

The Secretary of the Monetary Policy Committee.

Place

Middle East(ตะวันออกกลาง)ℹ️

A region where war developments are being monitored by the Monetary Policy Committee.