Pundits upbeat on monetary-fiscal fusingThe Monetary Policy Committee's decision to trim the policy rate by 25 basis points to 1.00% is aimed at supporting the new government's fiscal policy-led investment, says Suwat Wattanapornprom, head of the research division at Krungsri Securities. "The MPC's decision also implies that monetary policies will work coherently with fiscal policies from now on. Without support from monetary policies, fiscal policies cannot yield efficient results." Kuala Lumpur-based Maybank shared a similar view, stating the unexpected rate cut will dovetail with the strategies of the incoming Bhumjaithai-led government to stimulate fixed investment and anchor new industries. "Policy attention will likely focus on enhancing the pass-through of low policy rates to retail and corporate borrowing costs," added the bank.

Source: Bangkok Post February 27, 2026 08:40 UTC