Pre the protests no one thought this would’ve happened, but with the protests comes delays, and the fact that the infrastructure spending hasn’t started yet, the economy is stagnant from last year, well the BOT has come out with a rate cut now down to 2.25%.
The Bank of Thailand cut its one-day bond repurchase rate by a quarter of a percentage point to 2.25 percent, with monetary policy committee members voting six to one in favor of the decision, it said in Bangkok today. All 19 economists in a Bloomberg News survey predicted the rate would be held.
This changes things, we know that there are many many property funds, reits (if the revenue department ever sorts itself out), and infrastructure funds in the pipeline waiting to be released over the next few months, and we were worried that this may hamper the market for 2014. But with rates being cut, expect the following being pitched by brokers hello leasing sector! They’re going to have a good time, hello financials! Also may benefit. Hello property! cheaper loans! Hello discretionary spending! Consumer interest rates should drop.
Needed another catalyst for a December rally? Well here it is :)