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6 Mar 2026

Financial Markets

Household and business interest burdens in 2026 are expected to decrease by approximately THB 14.0-14.7 billion (Current Issue No.3636 Full Ed.)

คะแนนเฉลี่ย
  • Commercial banks have gradually announced cuts to their lending rates (following the latest February 25 MPC meeting), with the newly adjusted lending rates taking full effect simultaneously among domestic systemically important banks (D-SIBs) on March 4. A key characteristic of this round of reductions is that lending rates have been lowered more substantially than deposit rates, with the primary objective of easing the burden on debtors. 
  • In 2026, debtors are set to benefit more from lower interest rates, as the rate cuts in late 2025 have already begun easing interest burdens early this year, while additional reductions during February to March 2026 may gradually take effect over the remainder of the year. KResearch estimates that roughly 71 percent of total outstanding retail and business loans will benefit from these adjustments by 2026, resulting in a combined decline in debtors’ interest burden of approximately THB 14.0-14.7 billion. 
  • Conversely, the latest round of bank interest rate cuts may inevitably increase pressure on interest income trends in 2026. Meanwhile, deposit costs may only see limited reductions due to the structure of deposit portfolios. Consequently, KResearch expects the net interest margin (NIM) of Thailand’s banking system to slow to a range of 2.50-2.60 percent in 2026, from 2.76 percent in 2025.

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Financial Markets