The hawkish stance of the Federal Reserve on maintaining “higher for longer” interest rates is projected to keep the Thai stock market in bearish territory. This comes as elevated rates pose a threat to global economic recovery, leading to consistent fund outflows from the Stock Exchange of Thailand (SET).
Despite the expected decision by the US central bank to retain the interest rate at 5.25 to 5.50%, Asian stock markets witnessed a downturn, mirroring Wall Street’s losses. The Fed’s indications of a possible interest rate hike this year, coupled with a longer-than-expected period of high rates to manage inflation, has led to unease among investors. The bank’s stated objective is to reach an inflation target of 2%.
Trading on the Thai stock market began on a low note but saw a marginal increase later in the day as the market…
