Morgan Stanley launched a new report this morning saying that they are concerned over the persistent upward pressures on asset prices in some parts of the AxJ region and signs of weakening productivity of incremental credit. Leverage, though not a concern, continues to rise (see pic1) due mainly to weak growth and QE in the developed world, driving the current account surplus in the AxJ region back down to levels seen in 1998. The baht remained the best performing currency in the region, appreciating 2.7% YTD against the USD (see pic2). Meanwhile, Thailand’s real policy rate is protruding from the negative zone (see pic3) thanks to lower inflation in recent months. I think all these could primarily hint you what the MPC will act on May 29. Cheers.
No comments:
Post a Comment