CIMB Thailand sees little difference in effects on Thailand between US presidential candidates

CIMB Thailand sees little difference in effects on Thailand between US presidential candidates

BANGKOK, 9 November 2016 (NNT) – CIMB Thailand has projected Thai trade will benefit from the conclusion of the United States presidential election regardless of its outcome but noted a win for Donald Trump would have short term impacts on the world’s financial sector. 

Senior Director of the CIMB Thailand’s Research Center Amornthep Chawla has pointed out that the trade policies of both Hillary Clinton and Donald Trump are unclear in terms of the US Trans-Pacific Partnership (TPP), which is beneficial to Thailand as it not a signatory to the pact and could help it compete against countries bogged down by their ties to the agreement. Nonetheless, he stated Thailand should work to enhance its ties to other Asian nations as the US is likely to downplay foreign dependence in the near future and focus more on domestic production. 

The major difference Amornthep outlined in terms of the election outcome is that a win for Clinton would add value to the Thai baht as it spurs US investors to spend abroad while a win for Trump would only bolster major currencies such as the Dollar and Yen. 

Nonetheless, CIMB Thailand believes the US Federal Reserve will adjust upwards its benchmark interest rate in December regardless of the country’s new president. It does not believe the Thai policy rate will follow suit as inflation in the Kingdom remains low. 

 

-- nnt 2016-11-09