The Thai Capital Market Business Federation (FETCO) stated that the policy interest rate of 1.00% remains appropriate. Although inflation has at times exceeded expectations, Thailand's economy is still recovering unevenly, and SMEs continue to face pressure from costs and credit. Mr. Paiboon Nalinthrangkurn, Chairman of FETCO, said that raising interest rates too quickly could further burden the business sector, especially SMEs that need support from monetary policy. The Monetary Policy Committee (MPC) voted on August 26, 2026, to keep the interest rate at 1.00% and assessed that the economy is still expanding at a low level. FETCO believes that for the remainder of 2026 and the first half of 2027, there is no pressure for Thailand to raise interest rates, and any consideration should distinguish between inflation driven by strong demand and that stemming from supply-side costs.
FETCO states 1% policy rate remains appropriate and no hike pressure, keeping yields low.
