Underscoring the weak outlook, Thailand's planning agency on Monday cut its 2014 economic growth forecast to a range of 3 to 4 percent from 4 to 5 percent amid a delay in public investments and weakness in private consumption.
The BOT's key interest rate is at 2.25 percent and analysts at HSBC forecast two more 25 basis point rate cuts that would take rates to 1.75 percent by the end of the first half of this year.
"Despite beating consensus expectations, the breakdown of the fourth quarter GDP data unsurprisingly reveals that heightened political tensions during the quarter resulted in a clear deterioration in domestic activity, particularly within the business sector," they said in a note on Monday.
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"Although the BOT has limited ammunition – it has already eased policy by 125 basis points since November 2011, and the high level of household debt remains an issue – we believe these bullets will eventually be used to shore up the economy," they added.
Elections held earlier this month have failed to restore political stability to Thailand, which has been hit by anti-government protests for months now. The gridlock is expected to delay large government spending plans. A controversial rice subsidy meanwhile faces funding issues.
"The (GDP) number was better than the consensus, but it is below 3 percent and that's not a good number in my view," Mayree Chowvikran, an investment strategist at Maybank Kim Eng Securities, told CNBC on Monday. "We have to monitor the political situation."
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Tim Condon, head of research for ING Financial Markets, added that while Thai assets have rallied since the February 2 election, the relief is likely to be "transitory." He expects a 25 basis point rate cut at the March BOT meeting or the April one.
In contrast, OCBC Bank said that while the political crisis in Thailand posed downside risks to the economy, a rate cut at the March meeting was unlikely.
"We recognize that the crisis is dominantly a political one, and a rate cut is unlikely to boost economic growth and market sentiment via the traditional channels," it said in a note.
— Writing by CNBC's Dhara Ranasinghe. Follow her on Twitter at @DharaCNBC