Thai banks cut interest rates, helping to reduce the burden by more than 1.4 billion baht.
Kasikorn Research Center provides an in-depth analysis of the downward trend in interest rates in 2569. Major D-SIBs (Digital Savings Banks) are collectively cutting lending interest rates, helping Thai borrowers reduce their financial costs by over 1.4 billion baht. The analysis also examines the future direction of net interest margins (NIM) for banks.
March 6, 2569. Dr. Kanjana Chokpaisalsilp, Research Administrator. Kasikorn Research Center revealed that Over the past 18 months, bank interest rates and other interest rates in the Thai financial system have continuously decreased in line with the Monetary Policy Committee's (MPC) policy direction. This reflects the process of passing on lower financing costs to the economy. Most recently, following the Monetary Policy Committee meeting on February 25, 2026, commercial banks gradually announced reductions in lending interest rates within less than a week. The newly adjusted lending interest rates took full effect simultaneously in D-SIBs (which together account for over 84% of the Thai banking system's loans) on March 4, 2026.
A key characteristic of this round of bank interest rate cuts is that banks are still lowering lending interest rates more than deposit interest rates. This reflects interest rate adjustments that prioritize alleviating the financial burden on borrowers, with loan interest rates reduced by approximately 0.05-0.15%.[1] While some banks have begun lowering interest rates on certain types of fixed-term deposits by 0.05%, a broader view since the start of the downward interest rate cycle in October 2024 shows that the average M-rates of D-SIBs have decreased by 0.70-1.22%, while one-year fixed-term deposit interest rates have fallen by an average of around 0.82%.
It is worth noting that the timing and format of deposit interest rate reductions will vary depending on the deposit portfolio structure of each financial institution.
Kasikorn Research Center forecasts that the proportion of baht-denominated fixed deposits that are not expected to have interest rates lowered by the first quarter of 2026 will reach as high as 46%.% Of the total outstanding balance of fixed deposits. While other financing costs have not immediately decreased, credit costs remain high due to the borrower's credit risk during this period of economic uncertainty.
In 2569, borrowers will significantly benefit from the downward trend in interest rates. Because the effects of the policy interest rate reduction at the end of 2568 will gradually be passed on to lending interest rates in early 2569, while the continued interest rate reductions during February-March 2569 will gradually take effect during the remainder of the year,Overall, 2569 represents a period of high financial costs for both households and businesses.[2] ️Decreasing continuously (Especially for borrowers with loan agreements referencing floating interest rates, including home loans, secured personal loans, and business loans, particularly for SMEs.)
From outstanding retail and business loans totaling approximately 12.67 trillion baht, Kasikorn Research Center estimates that approximately 71% The outstanding balances on these loans will gradually enter a period of interest rate reduction within 2569. This covers both the floating-rate loan portfolio and the portion with interest rate adjustments based on contract cycles. Therefore, when combining the effects of two rounds of loan interest rate reductions (based on the Monetary Policy Committee meetings at the end of 2025 and February 2026), This will reduce the interest burden for business and individual borrowers by approximately 14 combined.000-14,700 million baht This reflects the tangible and continuous impact of declining interest rates on households and businesses.
Conversely, further interest rate cuts by banks would put more pressure on interest income prospects in 2569. While the cost of deposits may be reduced within a limited range depending on the structure of the deposit portfolio,Kasikorn Research Center forecasts that the net interest income spread, or... NIM The Thai banking system's growth rate is projected to slow down to a range of 2.50-2.60% in 2569. From 2.76% in 2568.
[1] According to D-SIBs (Digital Industrial Banks of Thailand), the MRR (Minimum Retail Rate) decreased by 0.10%, the MLR (Minimum Lending Rate) decreased by 0.05-0.10%, and the MOR (Minimum Overdraft Rate) decreased by 0.10-0.15%.
[2] Only the business sector, excluding financial activities.
