Mr. Koraphat Vorachet, Assistant Director and Division Head of Research at Krungsri Securities (KSS), stated in “Kaohoon” program on October 30, 2025, that the Federal Reserve’s latest quarter-point rate cut was not a unanimous decision. However, Chairman Jerome Powell noted that such decisions do not require full agreement from the board, suggesting that the possibility of another rate cut remains wide open.
Mr. Koraphat also noted that the Fed ended quantitative tightening (QT) faster than the market’s expectation. Previously, QT helped the institution in reducing its balance sheet from nearly USD 9 trillion by about USD 2 trillion. However, the central bank put a stop to it once it sees stress in U.S. credit and liquidity as further QT would result in financial instability.
Mr. Koraphat estimated that the Fed will further loosen the monetary policy to add liquidity and impose quantitative easing (QE) next year on a small scale but constantly. During this period, he recommended Thailand to attract foreign investment as much as possible.
Although Mr. Powell stated that it is not certain whether the central bank will ease rates at the next meeting, Mr. Koraphat confidently asserted that the Fed will cut interest rates again due to stress in U.S. liquidity and a weakening labor market. He noted that the central bank often tries to make it difficult for the market to predict the outcome of its rate decisions in order to stabilize risk.
Regarding the Thailand market, Mr. Koraphat stated that it is constantly recovering but Mr. Powell’s comment during the interview has paused the tech sector rally. The sectors Mr. Koraphat recommended are those related to China as the nation has been trying to address its deflation issue. Recently, its government has met with its petrochemical producers, discussing reducing their production capacity.
KSS recommends PTT Global Chemical PCL (SET: PTTGC) and Indorama Ventures PCL (SET: IVL) as these companies are expected to benefit from this development. Additionally, Mr. Koraphat also recommended Advanced Info Service PCL (SET: ADVANC) and Gulf Development PCL (SET: GULF) as their third quarter performance reports are expected to show positive earnings.
Mr. Koraphat also highlighted the merger between Banpu PCL (SET: BANPU) and its subsidiary, Banpu Power PCL (SET: BPP), stating that this would result in higher management efficiency. He added that the New Co could also benefit from Thailand’s rare earth agreement with the U.S., as, according to Australian research he cited, a light rare earth element can be extracted from coal, which is one of BANPU’s core businesses.
