Former minister poised to become central bank chairman vows to excel in the role
PUBLISHED: 19 Dec 2024
Kittiratt Na Ranong has called for urgent cuts to Thailand’s interest rates to revitalize the economy, asserting that the current rates are excessively high. Expected to be appointed as the new chairman of the central bank, Kittiratt spoke at a recent seminar highlighting the need for cooperative efforts to avert economic disaster.
“We must act quickly to prevent disaster. I believe this is the way forward,” he stated, reiterating his previous stance advocating for sharp interest rate reductions.
While an official announcement regarding Kittiratt’s appointment has not been made, sources confirm that his selection is imminent, as covered by local media.
However, his nomination has faced criticism from economists and former central bank governors who are concerned about potential political interference in the institution’s independence.
The current administration has had a contentious relationship with the central bank since reclaiming power in September 2023, primarily due to disagreements over interest rates perceived as hindering economic growth.
‘Intervene with thoughts’
Having served as finance minister from 2012 to 2014, Kittiratt has previously engaged in disputes with the central bank’s leadership.
His recent remarks followed the central bank’s decision to maintain its key interest rate at 2.25%, after an unexpected cut in October.
Although some advocate for a rate decrease, Kittiratt acknowledged that the committee must have its rationale for keeping the rate stable.
Regarding the possibility of leading the Bank of Thailand, Kittiratt expressed confidence in his ability to fulfill the responsibilities if appointed, emphasizing his commitment to meet expectations across the board.
He clarified that while the chair does not control monetary policy directly, they have a role in guiding discussions within the board, which is responsible for selecting the monetary policy committee that includes the governor and other key players. This position also holds influence over the choice of the next central bank governor when the current one’s term expires in September 2025.
