New Thai BOT Governor to be announced is a positive.

Today the Thai Government will very likely announce its choice for a new Bank of Thailand Governor. (BOT)

The current one's term expires September 1 -and I for one much welcome a change!  The Thai Finance Minister as well as the likely new appointment has already clearly stated their intention to induce a more active role, which means lower interest rates as well as mandating Banks to lower their lending rates (MLR)! As well as likely tame down a bit the strength of the Thai Baht which has excessively risen over the past year or so, even stronger then the mighty Swiss Frank.  All the while Thai inflation is at an overly-low 0% for some time, this itself is not healthy as it supports a stagnating economy.

For years the BOT has all but sterilized its monetary policy while sitting on an excessive 240 Bill. US$ in foreign reserves. This stemmed out of the 1997 Asian Financial crisis which originated in Thailand back then.  It created a sort of "never again" disposition/mandate and ever since, the BOT has been way-overly stingy, for lack of a better word.  Unlocking now some of this long past outdated mantra along with inducing higher Thai worker productivity, are the key elements to get the Thai economy moving again, in my view.   The news of a more progressive BOT, at last, may well be the caveat which broke the bearish Thai SET trend which reversed since late June and been on a rally mode, despite still many uncertainties, like US tariffs and politics.

Best Regards,