Mr. Veerathai Santiprabhob, Governor of the Bank of Thailand (BOT), stated at a seminar that the Thai economy is trending toward lower growth, with an expected expansion of only 2.3% this year, compared to 7% before 1997 and 5.3% after 1997. He noted that the current policy interest rate of 1.00% remains appropriate, but could be reduced by another 0.50% in the event of a shock. Meanwhile, the BOT is in the process of regulating BNPL loans, with plans to open a public hearing by the end of September and expects to issue new licenses in the fourth quarter of 2026. It is also overseeing Non-Bank lenders, which number over 3,600 entities across 24 categories, accounting for 75% of accounts and 55% of loan volume, compared to commercial banks and specialized financial institutions, which hold only 25% and 45%, respectively.
BOT signals possible rate cut, lowering Thai yields.
