POLICY RATE UNCHANGED AT 1.50%

However, downside risks to growth heightened, with Thailand’s trading partners’ likely weak expansion, fewer Chinese tourists, uncertainties over US trade policies and European political developments. Others include concerns over the European and Chinese financial sectors.
Jaturong Jantarangs, MPC secretary and BOT assistant governor, said Thailand’s monetary policy should remain accommodative and ready to utilise a proper mix of available tools to ensure the country’s monetary conditions are conducive to recovery and financial stability.
Tourism has been affected more than expected by recent measures to curb illegitimate tour operators, and private investment remained low, he said. 
However, Thai exports of goods improved thanks to the recent consolidation of production locations of certain products to Thailand. 

KRESEARCH EXPECTS 3.3% GROWTH 

Charl Kengchon, managing director of Kasikorn Research Centre, said the Thai economy in 2017 was expected to grow by 3.3 per cent, but the research house will review the figure again early in the year. 
It will monitor the government’s midyear budget of Bt160 billion. If the government can disburse the budget as planned it could increase 2017 GDP growth by 0.3-0.5 percentage point.
The financial market will remain volatile, especially interest rates. The US Federal Reserve is expected to increase its benchmark rate one or two times in 2017 after increasing it by 25 basis point to 0.75 per cent last week.
The policies of Donald Trump, who will become the US president next month, will have an impact on currencies, and KResearch will assess the baht’s standing against the US dollar again, Charl said.
He added that lending in the banking industry next year was projected to expand by 4 per cent, up from the 2.5-per-cent growth in 2016. Mortgages will still be the key drivers of loan growth at 7 per cent.
Non-performing loans are expected to peak at 3.01 per cent in the third quarter of 2017 from the expected 2.82 per cent at the end of this year. 

TISI hits 20-month high

The Thai Industrial Sentiment Index improved to the highest level in 20 months in November, with more orders from overseas, the Federation of Thai Industries said yesterday.
FTI chairman Chen Namchaisiri said the TISI increased from 86.5 points in October to 87.6 last month, largely thanks to the government’s tax incenฌtive to stimulate spending late this year and more orders to serve festiveseason demand in both the overseas and domestic markets during the yearend period. 
The subindex for the next three months got weakฌer as industrial enterprises were concerned over rising costs of raw materials and oil prices as well as a highฌer minimum wage. The subindex dropped from 102.9 in October to 102 points last month.
Meanwhile, the FTI’s Automotive Industry Club reported that Thai vehicle production in the first 11 months was 1.93 per cent higher than the same periฌod last year, at 1.95 million units.
Last month, overall auto production went up 4.67 per cent year on year to 170,784 units, on more orders both domestically and for export.

Aura opens office in Bangkok

Australian corporate adviser and fund manager Aura Group has continued its expansion into Asia with the recent opening of its Bangkok office. 
The group says the establishment of the Bangkok office demonstrates its commitment to becoming one of the first international corporate finance and investฌment firms with operational coverage across the region. 
Situated at The Interchange 21 Tower on Sukhumvit Road, the new office will focus on facilitating Aura Group’s growth in Southeast Asia and provide a local presence for its wealthmanagement clients.
Aura Group is a global financialservices business specialising in corporate advisory, funds and wealth management and principal investments, with offices in Sydney, Melbourne, Singapore and now Bangkok. 
The group employs more than 40 fulltime staff, and oversees about Bt5 billion worth of funds under management and advisory, spanning 30 portfolio and affiliate companies. 

 Milled rice market planned

The Commerce Ministry has come up with the idea of establishing the Kingdom’s first ever milledrice market to increase trading channels for rice farmers and millers. 
After meeting with the Thai Rice Mill Association, Commerce Minister Apiradi Tantraporn said yesterday that the government would collaborate with private enterprises to set up a central market for milled rice so that farmers would have a greater opportunity to meet with rice traders.
Up to now, rice trading has relied largely on exporters. The setting up of milledrice market should increase bargaining power for rice farmers. 

Gifts for good GH Bank customers 

As a New Year gift, the Government Housing Bank will give Bt1,000 back to its housingloan customers who have had a good repayment record for the past 48 months, and if they owe the bank no more than Bt1 million.
GH Bank president Chatchai Sirilai said more than 178,000 customers were qualified to receive Bt1,000 each.
The project is aimed at encouraging good financial discipline among lowincome customers, and the Bt1,000 gift will increase purchasing power of lowincome earners, who can use the money to increase cash flow in the domestic economy.
Customers can contact GH Bank branches nationwide to receive the money. The bank will make the payments from today until January 31.