Bangkok: Analysts see the stock market responding to the new BOT governor since last week. Analysts believe that the stock market has been adjusting to the new BOT governor since last week, so today there should be no strong adjustment. The private sector has assigned homework to the new BOT governor to solve several monetary policy issues, including interest rate spreads and the baht.
According to Thai News Agency, Mr. Wiravat Wirojpoka, Senior Director of Securities Analysis at FSS International Securities Co., Ltd., stated on the Investment Minute program on MCOT's Thai News Agency that the capital market has already adapted to the announcement of the new Governor of the Bank of Thailand. The market has been anticipating this change since news surfaced that the new governor would attend a cabinet meeting, which was eventually postponed. Market expectations suggest that the new governor may pursue a more relaxed monetary policy, potentially leading to lower interest rates. This outlook has had a positive effect on the stock market, particularly benefiting interest rate-sensitive stocks such as those in finance, REITs (Real Estate Investment Trusts), and fixed income sectors.
Mr. Issara Ratadilok Na Phuket, Vice Chairman of the Federation of Thai Industries (FTI), expressed his congratulations to the new governor via Facebook. He highlighted the monetary policy challenges facing the new governor, which include addressing appropriate interest rate spreads, exchange targeting to maintain a competitive baht value, and aligning monetary policy with the government's fiscal policy to ensure cash flow in the economy. He emphasized the need for new financial tools and alternatives in the money market to support businesses and the public effectively.
The monetary policy challenges awaiting the new BOT governor include ensuring fair interest rate spreads, targeting a competitive baht value to boost exports, and adopting a monetary policy that aligns with government fiscal strategies. Additionally, there is a call for innovation in financial tools to provide alternative solutions beyond traditional banking services. Mr. Issara urged Bank of Thailand executives to collaborate with government policies and prioritize national benefits over traditional management frameworks.