Thailand’s former deputy premier and finance minister Kittiratt Na Ranong (Photo: Government House) |
The Thai government is gearing up to nominate a devoted member of the ruling party, known for his strong views on the central bank’s policies, to the prestigious position of chair of the Bank of Thailand (BoT). This move, aimed at consolidating control over the central institution amidst a longstanding tug-of-war over interest rates, comes straight from two insiders. Enter Kittiratt Na Ranong, a 66-year-old former deputy premier and finance minister, who has the backing of the Pheu Thai Party-led government, the sources divulged. During his finance minister stint from 2012-2014, Kittiratt was no stranger to tussling with the then central bank governor over monetary policy decisions. And guess what? His nomination hasn’t even hit the media waves yet. Lately, Kittiratt has been vocally supporting the current government’s plea for a rate cut to breathe life into an economy that limped along with a mere 1.9% growth last year. Just a few weeks after the Pheu Thai Party clawed its way back to power in September 2023, the BoT—a veritable bastion of monetary conservatism—hiked the benchmark rate for the eighth consecutive time, reaching a 10-year peak of 2.50%. And despite the clamor for easing, the stance has remained as rigid as ever. Curious about Kittiratt’s thoughts on all this? Well, he’s stayed mum on the nomination, and so has the BoT, which only confirmed that it has put forth two candidates—a mystery they wouldn’t unravel. The permanent secretary of the finance ministry? Also tight-lipped. So, who’s the final pick among the three nominees? This decision lies with a seven-member independent panel, their choice subject to the finance minister, cabinet, and the king’s approval. Just a heads-up: while the BoT chair might not sway interest rates per se, the chair does play a pivotal role in selecting the monetary policy committee, inclusive of the governor, two deputy governors, and four external experts. Plus, as if that influence wasn’t enough, the chair will have a say in choosing the next BoT head when Sethaput Suthiwartnarueput’s term wraps up in September 2025. Now, let’s dive into the ever-contentious rates row. The BoT holds that its policies are perfectly balanced at neutral levels, attributing slow growth to deep-seated structural challenges. Governor Sethaput has remained steadfast that while a rate cut might offer a sugar rush to the economy, it’s not worth the long-term complications it could spawn. This hardline stance has drawn fire from all quarters, including Pheu Thai’s leader Paetongtarn Shinawatra, who ascended to the prime minister’s mantle just last month. Lamenting the central bank’s independence as a stumbling block back in May, the new administration has been pushing for policy changes that align more with their growth-centric goals. Adding fuel to the fire, Commerce Minister Pichai Naripthaphan doubled down on Monday with another call for interest rate cuts to crank up liquidity, as the government grapples with sluggish growth in Southeast Asia’s second-largest economy. Let the drills commence! The BoT will scrutinize the three chair nominees’ qualifications over the next two weeks, according to selection committee head Sathit Limpongpan. “The committee will gather post-reviews for further deliberation, and we expect a decision before mid-October,” he disclosed to Reuters. The tension is palpable as we await the BoT’s reshuffling. One thing’s for certain: the financial theater in Thailand is about to get a lot more interesting. |
Kittiratt Na Ranong Poised for Bank of Thailand Chair: Policy Shifts Ahead?
29 Comments
Leave a Reply
More from ThailandMore posts in Thailand »
- Ronakorn Kwansomkid Arrest: Pathum Thani’s Major Drug and Firearms Bust Uncovered
- Sustainability Expo 2025: ThaiBev’s Commitment to Green Progression at QSNCC
- Sustainability Expo 2024: ThaiBev’s Vision for a Greener Future at QSNCC
- Bangkok’s Con Artist Unveiled: The Astonishing Saga of Suwadee Nuannil’s Compelling Fraudulent Escapades
- Suwadee Nuannil’s Arrest: Inside the Unbelievable Deception of Bangkok’s Master Con Artist
- Thapana Sirivadhanabhakdi Leads Thai Beverage’s Education Grants at Sustainability EXPO 2024
- Chaing Mai Flood Rescue 2024: Communities Unite Amid Ping River Chaos
- Lerboon Udomsap’s New Flood Alert: Greater Bangkok Prepares for Rising Waters
- Bangkok Power Pole Crash: Huai Khwang District’s Unexpected Drama Unveiled
- Chiang Mai Floods: Historic Ping River Overflow Sparks Urgent Rescues and Community Resilience (October 2024)
- Mae Chan’s 10,000 Baht Handout: Mixed Reactions and Economic Impact in Chiang Rai
- Impact of Thailand’s 10,000 Baht Stimulus on Political Allegiances: Nida Poll Insights October 2024
This seems like a blatant power grab by the Pheu Thai Party. Consolidating control over the central bank is a dangerous precedent.
I disagree. Kittiratt’s experience is valuable, and sometimes a central bank needs fresh leadership aligned with the government’s economic vision.
Fresh or not, the central bank’s independence is crucial. Once the government starts meddling, it can lead to politically motivated monetary policies.
Joe’s right! We’ve seen what happens when politicians get too cozy with central banks. Look at Zimbabwe or Venezuela. Economic disaster.
A rate cut could be beneficial. The Thai economy has been sluggish for too long, and Kittiratt’s approach might be what’s needed to stimulate growth.
A temporary rate cut might offer relief, but it won’t address structural problems. Long-term consequences could undermine the economy’s stability.
Why not try the rate cut? If it doesn’t work, we can always adjust. Doing nothing is not an option!
Exactly, there’s always room for adjustment. The priority should be breathing life into the economy now and addressing structural reforms simultaneously.
This is just rich politicians scrambling for more power. Does anyone really believe this will benefit the average Thai citizen?
David, aren’t you being a bit cynical? There are always political motives, but positive changes can still come of it.
Maybe, but we’ve seen this story before. When power shifts like this happen, it’s usually the average folks who get the short end of the stick.
This might be an opportunity to introduce more progressive monetary policies in Thailand. The BoT has been too conservative for too long.
Progressive policies? More like reckless. Stability and gradual changes are key, not knee-jerk reactions.
Gradual changes won’t cut it in the current economic climate. Bold moves are necessary to shake things up.
Wasn’t Kittiratt the same finance minister who downplayed Thailand’s economic struggles back in 2013? Not exactly a confidence booster.
People can learn from their past mistakes. Judge him by what he proposes now, not just on what happened a decade ago.
If Kittiratt becomes BoT chair, I hope he understands he can’t just lower rates without considering inflation and foreign investment impacts.
Sethaput’s term ends soon. Guess what? It’s gonna get even more politically charged in the coming months.
And that’s the problem. Central banks should be above politics, not mired in it.
This is intriguing. It’s clear that whatever happens, Thailand’s economic policy is in for some significant shifts.
Does anyone even think about the long-term impacts here? These short-term fixes often lead to bigger problems down the road.
Interesting but troubling times ahead for Thailand. Balancing growth and stability is no easy task.
The selection process seems robust, but political influence could compromise the integrity of the BoT.
People always forget that central banks serve a larger purpose – not just to satisfy the whims of ruling governments. Integrity is everything.
You’re right, but sometimes the central bank needs to be more aligned with government goals to achieve national economic targets.
Interference in the central bank’s policies rarely ends well. Just look at history.
History also shows that rigid policies can stifle growth. There’s a middle ground to be found.
At the end of the day, this nomination could be either a disaster or a saving grace. Only time will tell.
Exactly, but we should be very cautious. The stakes are high.