26 February 2026 Emerging Asia Monitor BoT surprises with a cut, while also throwing its hands up in the air

The BoT surprised almost all forecasters, including us, with an extra 25bp cut to its policy rate to 1.00%.
At the same time, though, it has conceded the battle against structurally subdued GDP growth…
…We still believe that 1.00% will mark the terminal rate, but more CPI misses could force another cut.

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