1) Thai stock market overview
Thailand’s SET Index closed at 1,610.52 points, increased 3.61 points or 0.22% with a trading value of 44 billion baht. The Thai stock market moved in the same direction as most of the major markets in Asia, edging slightly higher after a huge surge yesterday. However, the market was moved by DELTA and PTTEP, together combined for an increase of 4 index points, otherwise the market could close in a negative territory.
Meanwhile, the Monetary Policy Committee resolved to increase interest rate by 25 basis points, which is in line with the market expectation. However, the central bank revised down Thailand’s economic growth this year by 10 basis points to 3.6% from the forecast of 3.7% seen in November last year.
2) Bank of Thailand hikes rate by 25bps
The Bank of Thailand (BOT) has announced that the Monetary Policy Committee (MPC) voted unanimously to raise the policy rate by 0.25 percentage point from 1.50 to 1.75 percent, effective immediately.
The Committee projects the economic growth to be 3.6 and 3.8 percent in 2023 and 2024, respectively.
Headline inflation would likely return to the target range by mid-2023, and is projected to decline to 2.9 and 2.4 percent in 2023 and 2024, respectively. Easing supply-side pressures, notably from electricity and oil prices, are key contributing factors. Core inflation is projected to fall to 2.4 and 2.0 percent in 2023 and 2024, respectively. However, persistently high inflation remains a risk, as producers could pass on higher costs absorbed in the past and demand-side pressures could pick up as the recovery gains traction.
3) Thailand welcomes 6.15 million arrivals in 1Q23, exceeding expectations
Thailand received 6.15 million international tourists from January to March 27, 2023, exceeding the government’s target of 6 million, according to government spokesperson Traisuree Taisaranakul on Wednesday.
The government set a goal of 6 million foreign arrivals in the first three months ending March of this year.
According to the Thailand Tourism Council, the country now anticipates 30 million international visitors this year, with spending combined amounting to 1.5 trillion baht. Meanwhile, the administration earlier expected 25 to 30 million arrivals for the entire year.
4) Thai Manufacturing Production shows less-than-expected drop in February
Thailand’s manufacturing production index (MPI) dropped less than expected in February as pressure from slowing global demand continued to weigh on Thai exports.
Data from the industry ministry on Wednesday showed that industrial production fell 2.71% last month, which was slightly lower than a drop of 2.8% forecast by a Reuters poll. The reading came after January’s revised 4.81% year-on-year decrease.
