Bank of Thailand to cut again, Asia and the AI boom

We will be holding an online briefing on Wednesday to discuss the region’s long-term economic outlook out until 2050. You can register by clicking here.

We expect the Bank of Thailand to cut rates at next week’s meeting and to deliver at least one further reduction later this year, taking the policy rate to 0.75% as the central bank looks to support the struggling economy, boost inflation, and counter upward pressure on the baht. Our forecasts are more dovish than consensus.

Our revamped AI Economic Impact Index shows that the United States remains the global leader in artificial intelligence, and that the Asian Tigers and China are well placed to benefit over the long term. In contrast, much of South East Asia – including Indonesia and the Philippines – is less well placed to benefit.