Thai stocks continue to gain in response to stable Thai politics. The baht has reached its strongest level in nearly 13 months. Keep an eye on the MPC meeting this afternoon. Analysts expect a split vote to maintain the 2.5% interest rate, while the baht continues to appreciate. This morning, the baht reached its strongest level in nearly 13 months at 34.06 baht per dollar, amid a weaker US dollar and the global gold price that continues to move above $2,500 per ounce. Kasikorn Research Center expects the movement range today to strengthen past 34 baht to 33.95-34.25 baht per dollar. Factors to monitor include the results of the Monetary Policy Committee (MPC) meeting, which will be announced this afternoon, as well as the direction of foreign capital that will enter the Thai stock market and bonds, as well as signals about the economic policies of the new Thai government and the Fed or US Federal Reserve meeting report. Mr. Prakit Siriwattanaket, Managing Director of Merchant Partners Asset Management, al so expects that the MPC should have 2 votes in support of the interest rate cut, while the other 5 votes should maintain the interest rate. If this is the case, it means that the MPC will have a softer stance in using monetary policy to stimulate the economy because during the cabinet change, the use of fiscal policy may be somewhat interrupted, while the overall investment in Thailand is sluggish. Therefore, the MPC's stance should be softer in using monetary policy to control inflation. It is expected that the MPC will maintain the interest rate this time, but it is expected to reduce the interest rate in the next period. Mr. Prakit added that what investors are waiting to see is the new cabinet's policy to stimulate the capital market, such as increasing the Vayuphak Fund, which should be implemented continuously. As for the digital wallet, we will have to wait and see what form the government will take in stimulating it because the budget is already there, so it should be able to proceed immediately. Thi s includes the 2024 budget of 120 billion baht, the mid-2024 budget, and the 2025 budget of another 150 billion baht, totaling more than 300 billion baht, which can be implemented immediately this year. However, the change in form will be cost-effective and will stimulate multiple rounds of money circulation, such as splitting the budget into 50 billion baht at a time. While Mr. Poon Panichpiboon, Krungthai GLOBAL MARKETS, Krungthai Bank, assessed that the MPC may not vote unanimously 6-1 or 5-2 to maintain the policy interest rate at 2.50% as before, it should be closely monitored to see how the MPC will change its view on Thailand's economic and inflation outlook, given the current developments in Thai politics and Thailand's economic problems. This morning, Thai stocks continued to open positively after this morning at 10.35 am, the index moved 1,335 points, +7.19 points, reflecting confidence in the political unlocking. The government is moving forward to stimulate the economy with a digital wallet budg et. Whether or not the format will change is something the market is watching. If it is paid in cash, each person will spend half, which will make money circulate in the economic system faster than the digital wallet system. Meanwhile, the gold futures contract on the world market COMEX set another record, closing yesterday at a price higher than 2,550 dollars/ounce. However, due to the appreciation of the Thai baht, the price of gold in Thailand fell by 150 baht this morning. The selling price of gold bars is 40,700 baht per baht. The world gold price has risen due to the weakening of the US dollar because investors are confident that the Fed will cut interest rates at its September meeting, while the SPDR Gold Trust fund holds 859 tons of gold, the highest in 7 months. Analysts expect the world gold price to rise again to $2,600/ounce by the end of 2024 and $3,000/ounce by the middle of 2025. Source: Thai News Agency