The BoT governor said the policy rate of 1% is appropriate and that the central bank still has tools (including a further cut to the policy rate to 0.5% if needed) for emergencies. Thai GDP growth is forecast at about 2.3% for 2026, below the estimated potential of 2.7%. The BoT acknowledged SME borrowing costs are high and banks are favouring large corporates, so SME loan growth is lagging. Rate cuts help borrowers in general, but targeted help for SMEs will have to come from fiscal measures. Policy effects take about 8-12 months to show, so do not expect quick relief from rates alone.