Citigroup economist Wei Zhengji noted in a report that the Bank of Thailand is unlikely to cut its policy rate at the February meeting, as the decline in consumer prices narrowed in December and economic activity showed improvement. The central bank recently indicated that the Thai economy achieved sequential expansion in November, supported by better indicators for both domestic and external demand. The economist stated that no new shocks have emerged since the central bank's latest meeting in December.

However, given the persistently low core inflation, Citigroup still anticipates the central bank will implement one final 25-basis-point interest rate cut in April, which would bring the rate down to 1.00%.