Council of State Declares Kittiratt Na-Ranong Unsuitable for BoT Chair Position
PUBLISHED: 27 Dec 2024 at 12:11
The Thai government’s initiative to persuade the Bank of Thailand (BoT) to lower interest rates has faced a major hurdle following the Council of State’s decision that Kittiratt Na-Ranong, the proposed chairman, is unqualified for the role.
While not explicitly naming Kittiratt, Council Secretary-General Pakorn Nilprapunt stated that his advisory position to the prime minister categorizes him as a “person holding a political position,” which compromises his suitability to chair the BoT. According to Pakorn, such appointments appear politically motivated and undermine the integrity of government administration.
Though the BoT chairman does not participate in policy meetings, their role includes evaluating the governor’s performance and input on external experts joining the seven-member rate-setting panel. This legal assessment indicates that advancing Mr. Kittiratt’s appointment could generate significant political challenges for the government.
The government has yet to respond to this recent development, which unfolded just three days after a report from a financial permanent secretary highlighted Mr. Kittiratt’s disqualification.
Hours following the report, Pakorn clarified that the council had not finalized its legal stance on the issue.
The government’s strategy aims to enhance its influence over the central bank, considering the chairman’s role as a potential leverage point, as noted in discussions earlier this year.
The Bank of Thailand cut its benchmark interest rate by a quarter point this year, bringing it to 2.25%, but opted to maintain the rate at its last meeting. The administration is advocating for lower borrowing costs to lighten the burden of household debt, while BoT officials assert that current rates are suitable and alternative measures are necessary to stimulate growth.
