Tuesday, 16 December 2014

Thailand Stock Exchange drops

Partly as a result of markets falling generally and energy related stocks in particular the SET ( Stock Exchange of Thailand ) took quite a hit 2 days ago, down 7 % in one day.

Although it has since recovered some of the fall, Thailand`s economy is showing signs of weakness.

The Bank of Thailand has it`s hands somewhat tied with interest rates.
Household debt is very high,borrowing without thought of future consequences seems to be a trait of some Thais.

If the BoT reduce rates to bolster the economy, they may just encourage even more borrowing.

A never ending spiral.

No comments:

Post a Comment