The SET Index exhibited a sharp increase following the Bank of Thailand (BOT)’s decision to lower its key policy rates by 25 basis points to 2.00%.
Thailand’s central bank came to a resolution to lower its key interest rate during a policy review on Wednesday, with a 6 to 1 vote, opting to decrease the one-day repurchase rate by 25 basis points to 2.00%.
This came as a surprise for analysts as the adjustment defied widespread market forecasts that anticipated the rate would remain steady at 2.25%.
According to Krungsri Securities (KSS)’s forecast, as the Monetary Policy Committee (MPC) decided to cut the interest rate, it is expected that the Thai stock market index could rebound approximately 30-40 points. Sectors that would benefit from the rate cut are finance, real estate, and retail.
Globlex Securities noted that the SET Index rose with purchasing power returning in agricultural, commerce, finance, and tourism stocks. However, the analyst views the rebound as limited due to the continued fund outflows.
