The Monetary Policy Committee unanimously held the policy rate at 1.00% a year on 26 Aug 2026. Inflation is expected to rise until early 2027 (El Niño and cost pass-through) before falling back, and the Middle East war and trade barriers remain key risks. SME lending is still contracting while big-business credit grows, so banks are cautious with riskier borrowers. For an SME owner: don't expect cheaper borrowing from policy easing soon; prepare clean financials and ask banks about specific soft-loan or targeted support measures the committee mentioned. Expect cost pressure to show up in supplier prices over the coming months.