24 Nov 2022
Financial Institutions
Fast approaching is the last month of 2022, a year in which Thailand’s economy has bottomed out following the years-long impacts of the COVID-19 pandemic. In principle, the economic recovery should be a supporting factor for investment in risk assets. In fact, however, overall investment has proven quite volatile this year, especially in high-risk assets like cryptocurrencies. This has also impacted related players in the ecosystem such as platform providers or large brokerage companies.... Read more
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26 Jul 2022
Sustainable finance has seen rapid growth worldwide. In 2021, sustainability debt instruments were valued at USD 929,700 million, or 10x growth over the past five years, while sustainability loans amounted to USD 716,561 million, or 7x growth from 2018. Meanwhile, Thailand’s total outstanding value of sustainability debt instruments in the second quarter of 2022 was THB 330,049 million – these were mainly sustainability government bonds, followed by green bonds for energy projects. KResearch projects that there will be issuances of sustainability debt instruments worth THB 76,000 million in 2022, or 12.1-percent growth from 2021, in alignment with economic expansion. However, in the next two to three years, the tighter monetary policies of central banks worldwide, including Thailand, will result in slowing expansion of debt instruments. Meanwhile, in the long term, renewable energy policies and the support of financial regulatory agencies will be major factors which will drive the increasing popularity of sustainability debt instruments.... Read more
22 Jan 2021
Aside from growing risks posed by the new COVID-19 outbreak which may hamper Thailand’s economic recovery in 2021, another important factor that warrants attention is the rising fund raising cost in the Thai bond market early in the year. This situation is partly due to projections regarding the increasing volume of Thai government bonds and the rising US treasury bond yields influenced by political developments in the US, following Joe Biden assuming the US presidency and committing to the implementation of additional large stimulus packages.... Read more
7 Nov 2019
On November 6, 2019, the Bank of Thailand (BOT) announced the “Relaxation of rules to facilitate capital outflows and lessen pressure on the Thai Baht”, while the Monetary Policy Committee (MPC) resolved to cut its policy rate to 1.25 percent. Their concurrent actions have caused the Baht to weaken slightly.... Read more
27 Apr 2018
KResearch expects the Federal Reserve (Fed) will resolve to maintain its policy interest rate at 1.50-1.75 percent in its third meeting of this year, in awaiting to assess further developments of the US economy and risks arising from trade disputes. Given the US attempts to minimize their trade deficits with many countries, their import duties may be raised again, especially for imports from China. If the two countries cannot reach a satisfactory conclusion on their trade relations, higher import duties imposed by the US will become in effect at the end of May 2018, which will most likely affect their economic developments and inflation directions. Therefore, the Fed will have to keep a close watch on that situation.... Read more