FETCO Advocates Maintaining 1% Interest Rate for Economic Stability

According to a report by Prachachat Business on September 7, 2026, the Federation of Thai Capital Market Organizations (FETCO) has expressed that the Bank of Thailand (BOT) is under no immediate pressure to raise interest rates. Despite some periods where inflation has exceeded expectations, FETCO maintains that the current 1% rate is still suitable for the country's economic climate.

FETCO representative Paiboon Nalinthrangkurn highlighted that Thailand's economic recovery remains uneven across different sectors. A primary concern is the small and medium-sized enterprise (SME) sector, which continues to face significant pressure from rising operational costs and restricted access to credit. FETCO warns that an premature increase in interest rates could exacerbate these financial burdens, potentially hindering business stability.

For residents and travelers, this stance suggests a period of monetary stability, which may help keep borrowing costs steady for the time being. However, the long-term trajectory of interest rates remains subject to future policy decisions by the Bank of Thailand. It remains to be confirmed how the central bank will balance these concerns regarding SME vulnerability against future inflationary trends. Observers should monitor upcoming BOT meetings for any shifts in monetary policy that could impact the broader cost of living and business environment in Thailand.