Currency and Interest Rate Outlook slide image

Currency and Interest Rate Outlook

K KASIKORNTHAI Currency and Interest Rate Outlook USD/THB: End Period ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Rate Trend Bt 35.97 35.84 4.00 Fed Funds rate BOT's 1-Day Repurchase rate 37 32.68 32.91 2.75 33 30.60 32.66 32.55 32.75 2.25 29.95 2.00 29.98 2.00 1.50 1.50 1.50 1.75 1.25 29 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21F 0.00 ■ Baht appreciated to around Bt32.6 per USD late August 2021 after a correction on short position on THB against USD However, Baht would hit 32.75 per USD at the end of 2021 as Fed's tapering pressure, impact of COVID-19 to Thai economy and current account deficit 0.50 0.50 0-0.25 0-0.25 0-0.25 0.25-0.50 0.50-0.75 1.25-1.50 2.25-2.50 1.50-1.75 0.00-0.25 0.00-0.25 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21F ■Fed would announce the QE tapering program later this year, and keep the Fed Funds rate of 0.00- 0.25% in response to more persist inflation pressure and improving job market data BOT would maintain its policy rate at 0.50% in 2021 after maintaining a FIDF fee cut at 0.23% until the end of 2022 and pointing credit measures having more effective liquidity to effected groups Note: F is estimated by KBank Capital Markets Research (as of August 18, 2021) บริการทุกระดับประทับใจ K KASIKORNTHAI ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Monthly Economic Conditions: May-June 2021 143 2019 2020 YTD Units: YoY %, or indicated otherwise Private Consumption Index (PCI) Non-durables Index Durables Index Service Index Passenger Car Sales Motorcycle Sales Private Investment Index (PII) -2.6 -5.2 Construction Material Sales Index -0.7 -3.5 4Q-20 1Q-21 Dec-20 Jan-21 2.3 -1.9 1.8 -1.1 2.3 -1.7 -1.9 -4.2 -0.1 -1.7 -12.3 1.1 -2.2 6.9 2.9 -21.3 -23.4 -17.3 -27.8 -1.6 -28.4 0.5 -10.1 10.6 -3.3 -10.2 -4.0 0.7 11.0 0.9 6.9 6.2 -5.9 3.9 -1.3 Feb-21 Mar-21 Apr-21 May-21 Jun-21 2020 3.3 -4.6 -2.5 3.6 12.6 0.5 1.8 -8.7 -3.2 -0.8 5.4 -4.3 -2.5 -12.3 -7.7 13.3 54.9 24.3 -29.1 -19.7 0.5 14.1 -0.6 -28.2 -15.8 29.3 119.8 44.7 -6.2 -5.7 15.3 63.5 42.3 2.5 8.1 9.8 10.7 -8.9 16.5 17.1 28.0 12.6 3.8 -0.9 8.5 -6.1 223 2.3 1.7 Domestic Machinery Sales at constant prices -5.4 -4.9 7.4 9.4 11.4 6.2 8.4 12.8 36.7 57.2 21.9 Imports of Capital Goods at constant prices -0.9 -11.4 -4.1 16.3 4.8 2.9 30.6 19.8 20.9 30.3 30.3 Newly Registered Motor Vehicles for Investment -3.0 -10.9 5.8 Manufacturing Production Index Capacity Utilization Agriculture Production Index Agriculture Price Index 1.9 Tourist arrival growth Exports (Custom basis) Price Volume Imports (Custom basis) -1.8 3.1 Volume 4.8 Trade Balance ($ millions) (Custom basis) Current Account ($ millions) Headline CPI Core CPI Price 0.2 -2.0 -5.7 -11.8 -4.3 10,009 24,477 3,063 516 711 182 796 38,206 16,539 -1,168 -2,551 -829 -673 -1,071 -806 -1298 -2624 0.71 -0.90 -0.40 -0.53 -0.27 -0.34 -1.17 -0.08 3.41 2.44 0.52 0.30 0.18 0.12 0.19 0.21 0.04 0.09 0.30 0.49 0.1 27.7 -4.0 -5.2 -3.6 -9.3 -1.6 0.8 -2.8 -2.0 -1.3 66.0 60.8 63.8 64.7 64.2 64.7 64.3 -0.3 -4.1 -2.1 3.6 -7.5 1.3 6.7 3.0 0.6 6.1 11.1 9.7 11.3 7.1 9.1 12.8 13.3 15.1 4.6 -83.2 -99.9 -99.7 -99.8 -99.8 -99.7 -99.2 N.A. N.A. -2.6 -6.0 -2.0 0.9 4.7 0.2 -2.7 8.3 13.1 41.6 0.3 -0.8 -1.4 -1.9 -3.1 -3.7 -5.9 -1.6 5.0 4.5 -4.8 -12.4 -4.2 9.4 3.6 -1.3 9.3 16.6 35.4 5.9 65.2 8.6 18.0 25.8 4.3 ■Thailand's economic indicators in May reflected a declining trend in economic activity, due to the pandemic 9.4 Private consumption index contracted at a higher pace MOM, but improved YoY, due to low base effect ■ Exports strongly increased, as global demand started to 65.2 65.2 64.9 recover 0.6 3.0 11.4 Current account recorded a -99.5 deficit for seven consecutive 10.8 1.2 964 -202 ■ June headline inflation and core inflation edged higher at a lower rate, due to government measures relating to utility expenses Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), Office of Industrial Economics (OIE), and Office of Agricultural Economics (OAE) บริการทุกระดับประทับใจ -2.6 -2.4 -0.7 -0.2 1.9 -1.2 -2.2 11.8 14.6 38.5 -5.2 21.9 14.2 29.7 63.5 -0.9 2.2 8.4 10.1 7.7 -6.0 21.1 2.9 14.7 43.2 -0.8 11.2 months, due mainly to service balance 21.5 6.8 12.1 7 1,494 -6473 1.25 0.83 0.52 0.23 144
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