Siam Commercial Bank (SCB) expects the Monetary Policy Committee (MPC) to cut the policy rate to 1% by the first half of next year to support inflation and mitigate debt deflation risks. Last Wednesday, the MPC voted unanimously to reduce the policy rate by 25 basis points to 1.25%, effective immediately, to support economic momentum. The MPC has cut the policy rate four times during six meetings this year, lowering the rate by a total of 1 percentage point. According to Mr Yunyong, household debt remains high despite a gradual decline. Private consumption growth has slowed in recent periods and is expected to continue decelerating in 2026, as average household income has declined.

Source: Bangkok Post December 22, 2025 00:20 UTC