Retail borrowers have begun to benefit from a series of policy rate cuts over several months. Slow adjustmentIn the policy rate transmission process, bank lending rates typically decline by about half of the total policy rate cut. For example, when the policy rate is reduced by 0.25 percentage points, lending rates may fall by 0.125 percentage points. For small and medium-sized enterprises (SMEs), the new loan rate declined by 0.1 percentage points, while the effective interest rate dropped by 0.68 percentage points. For corporate borrowers, new loan rates fell by 1.35 percentage points and effective interest rates by 0.72 percentage points.

Source: Bangkok Post March 12, 2026 10:56 UTC