Thailand’s SET Index fell 20 points in the afternoon session on Thursday as investors weighed the likelihood that the central bank will aggressively raise interest rates during its meeting this evening.
As of 15.25 hrs. local time in Thailand, the SET Index dropped 19.50 points or 1.23% to 1,566.68, with a total trading value of THB46.4 billion.
The 20-point loss in the SET index during the afternoon session is anticipated to be triggered by reports that the Bank of Thailand (BOT) will hold an unscheduled meeting this evening discussing “Adjusting the Direction of Financial Policies During Economic Recovery” led by Mr. Ronnadol Numnonda, Deputy Governor for Financial Institutions Stability, and Ms. Suwannee Jesadasak, Senior Director Financial Institutions Policy and Supervision Department 2.
Globlex Securities is concerned about the Bank of Thailand’s stance on monetary policy. If the Bank decides to raise interest rates to combat growing inflation, which would be in line with other central banks around the world, it may lead to increased market volatility.