Srettha’s adviser Kittiratt rumored to take over as BOT board chairman
Appointment of ex-finance minister seen as attempt to pressure central bank on monetary policies
Former finance minister Kittiratt Na-Ranong has been rumored to be named the new board chairman of the Bank of Thailand (BOT), a Finance Ministry source has revealed.
Analysts believe the move is the ruling Pheu Thai Party’s attempt to pressure the central bank to use monetary policies that will boost the stagnating economy, including cutting the interest rate.
Kittiratt, who used to serve as chief adviser to former prime minister Srettha Thavisin, will succeed current chairman Porametee Vimolsiri, whose term ends this month.
In his role as PM’s adviser, Kittirat had expressed several opinions regarding the operations of the central bank. He had openly commented on the policy rate being excessively high and had mentioned that the BOT’s excessive use of "independence" has caused widespread distress to the economy.
Earlier this week, Commerce Minister Pichai Naripthaphan said that he wished the BOT would soon reduce the policy rate, as well as use measures to stop the baht from becoming too strong, in a bid to reduce people’s cost of living and protect exporters.
Pichai, a Pheu Thai member, said the rapid strengthening of the baht to 33 to the US dollar, a 5-6% rise in the past month, had significantly affected Thai exports, especially agricultural products whose profit margins were already low.
Pichai said he has arranged a discussion with the BOT governor, in which he would urge the central bank to expedite interest rate cut, manage the baht to prevent excessive appreciation, and increase liquidity for small and medium-sized enterprises.
“The central bank should not just oversee but also support economic growth, as monetary policy is more important than fiscal policy,” said the minister. “We don’t want to see Thailand become like South America, where people are getting poorer and resorting to robbery.”
