KBank Subsidiaries and ASEAN Economic Strategy slide image

KBank Subsidiaries and ASEAN Economic Strategy

K KASIKORNTHAI Currency and Interest Rate Outlook USD/THB: End Period ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Interest Rate Trend 3.25 Fed Funds rate BOT's 1-Day Repurchase rate 4.00 2.75 2.25 Bt 2.00 35.97 1.50 1.50 1.50 1.75 37 32.68 32.91 35.84 32.66 32.55 2.00 32 33 31.54 30.60 29.98 30.50 29 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20F ――USD/THB ■ USD/THB depreciated to around 30.90 in 1H20, due to a risk-off sentiment from fear of the COVID-19 outbreak and BOT rate cuts ■ However, USD/THB to drop back to 30.50 by the end of this year, due to the tendency toward US dollar weakness, expected stability in the BOT rate, and strong Thai economic fundamentals, such as high current account surplus, low inflation, and high global liquidity 0.00 1.25 0.50 0-0.25 0-0.25 0-0.25 0-0.25 0-0.25 0.25-0.50 0.50-0.75 1.25-1.50 1.50-1.75 0.00-0.25 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20F ■Fed would keep its ultra-monetary easing with Fed Funds rate of 0.00-0.25% and its quantitative easing throughout the year, from 1.50-1.75% in 2019, as the COVID-19 outbreak, existing US-China tensions, and US election uncertainty are expected to impact US economic growth ■ BOT may maintain its interest rate at 0.50% in 2020, from 1.25% in 2019, due to impacts of the COVID-19 outbreak globally on Thai economic growth Note: F is estimated by KBank Capital Markets Research (as of August 10, 2020) บริการทุกระดับประทับใจ K KASIKORNTHAI Monthly Economic Conditions: June 2020 ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK 2018 2019 2020 YTD Units: YoY %, or indicated otherwise 1Q-20 2Q-20 Mar-20 Apr-20 May-20 Jun-20 2020 Private Consumption Index (PCI) 4.5 2.5 1.7 -10.3 -0.8 -14.3 -11.5 -4.7 -4.4 Non-durables Index Durables Index Service Index 1.4 2.3 1.1 -7.0 1.2 -11.2 -6.4 -3.2 -2.8 8.0 -2.0 -12.00 -29.1 -22.0 -37.5 -32.0 -18.9 -20.4 5.3 Passenger Car Sales 19.1 -2.4 -22.6 Motorcycle Sales -2.8 Private Investment Index (PII) 3.5 Construction Material Sales Index 4.4 Domestic Machinery Sales at constant prices 6.1 Imports of Capital Goods at constant prices 3.6 -0.9 Newly Registered Motor Vehicles for Investment 5.7 2.8 -9.9 -28.2 -21.9 -31.1 -28.6 -24.3 -58.7 -44.6 -72.9 -61.4 -40.3 -40.2 -3.3 -5.7 -28.8 -11.2 -34.4 -37.1 -12.8 -16.9 -2.6 -6.5 -13.5 -7.9 -9.9 -18.2 -12.1 -10.0 -0.7 -0.3 2.7 -1.0 16.3 -2.5 -3.3 1.1 -5.4 0.6 -22.5 -1.7 -15.5 -28.5 -22.6 -10.8 -9.2 -19.6 -11.0 -17.5 -26.8 -13.7 -14.5 -3.0 -11.7 -24.5 -8.0 -25.4 -34.7 -12.6 -17.8 -19.0 Manufacturing Production Index 3.7 -3.6 -6.4 -20.0 Capacity Utilization 69.2 Agriculture Production Index 7.4 -0.4 -13.8 Agriculture Price Index -5.4 Tourist arrival growth 7.3 66.0 66.9 52.9 -4.7 1.8 8.8 -1.4 4.2 -38.0 -100.0 -76.4 Exports (Custom basis) 6.9 -2.6 0.9 -15.2 Price 3.4 0.3 -0.4 -2.0 Volume 3.9 -3.7 Imports (Custom basis) 12.0 Price Volume Trade Balance ($ millions) (Custom basis) Current Account ($ millions) Headline CPI Core CPI 0.71 -18.2 -23.8 -17.7 -12.9 51.3 52.3 55.2 59.9 -15.4 -0.3 2.7 -10.0 3.6 -2.9 -4.5 3.6 -100.0 -100.0 -100.0 -66.2 2.1 -22.5 -23.2 -7.1 -2.4 -2.3 -1.5 -1.2 1.8 -16.1 -0.8 -1.0 -21.9 -23.5 -7.1 -4.8 -1.9 -23.5 7.2 -17.2 -34.4 -18.1 -12.6 5.6 0.2 -0.9 -5.1 -4.2 -7.3 -5.1 -2.8 -3.0 7.7 -5.7 -0.1 -19.3 8.7 -10.5 -30.6 -15.8 -9.7 4,756 10,009 3,934 6,767 1,592 2,462 2,695 1,610 10,701 28,457 38,358 8,917 -837 544 -654 64 -247 8,080 1.06 0.71 0.41 -2.67 -0.54 -2.99 -3.44 -1.57 -1.13 0.52 0.53 0.12 0.54 0.41 0.01 -0.05 0.32 -10.5 67.8 -25.1 8.7 4.2 -1.6 ■June indicators suggested the Thai economy improved from the previous month, due to the gradual relaxation of lockdown measures ■ June private consumption indicators contracted at a lower rate, compared with the previous month ■ June exports continued to contract drastically, especially exports of automotive and parts, machinery and equipment, and petroleum- related products ■June current accounts registered a deficit from tourist revenue ■June headline inflation remained negative for 4 consecutive months but dropped at a lower rate than previous months. Meanwhile, core inflation turned negative for the first time in more than a decade Sources: Bank of Thailand (BOT), Ministry of Commerce (MOC), Office of Industrial Economics (OIE), and Office of Agricultural Economics (OAE) บริการทุกระดับประทับใจ 159 160
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