Thailand’s government is reportedly endorsing Kittiratt Na-Ranong, an outspoken critic of the central bank’s restrictive monetary policy and a supporter of the ruling party, as the new chairman of the Bank of Thailand, according to a report by Bloomberg, citing sources familiar with the matter.
The Ministry of Finance has recommended Kittiratt for the position of BOT chairman to a selection panel responsible for choosing a successor to Porametee Vimolsiri, who is concluding his term at the end of this month.
The selection committee has also requested the BOT to assess Kittiratt’s qualifications, along with those of two other candidates nominated by the central bank. Finance Minister Pichai Chunhavajira refrained from commenting on the selection of the BOT chairman, stating that the central bank is still in the process of evaluating the candidates.
Meanwhile, the panel lead, Sathit Limpongpan, mentioned that he has not been presented with the candidates’ names yet, as the BOT assessment takes precedence. A decision by the panel is expected by mid-October.
Though the BOT chairman does not hold authority over monetary policy decisions, the individual can evaluate the BOT governor’s performance and play a role in selecting external experts to join the seven-member Monetary Policy Committee overseen by Sethaput Suthiwartnarueput.
Kittiratt’s nomination is perceived as an effort by the new administration of Prime Minister Paetongtarn Shinawatra to exert influence over the central bank, which has resisted repeated calls for lowering the key interest rate since 2013.
While Paetongtarn has not publicly addressed monetary policy matters since assuming office last month, she previously characterized the BOT’s autonomy as an impediment to government initiatives aimed at stimulating the economy.
As for BOT governor, Sethaput has maintained firmness in resisting pressure to reduce interest rates from the previous administration of Srettha Thavisin, asserting that the current monetary settings are suitable for Thailand’s economic and financial environment.
Presently, there are indications of the new government’s inclination to push for rate cuts, as Commerce Minister Pichai Naripthaphan, on Monday, urged the BOT to adjust its policy framework to support growth and curb the strengthening of the baht.
Once the panel finalizes its decision on the chairman, it will be forwarded to Finance Minister Pichai for approval before being presented to the cabinet and officially published in the gazette. According to BOT regulations, the chairman and MPC members serve a three-year term and are eligible for reappointment for up to six years.
