Ex-central bank chief warns wrong chairman pick could spark disaster
Tarisa cautions poor choice could prompt government interference in Bank of Thailand, eroding investor confidence
Former Bank of Thailand governor Tarisa Watanagase on Tuesday cautioned the panel selecting the next chairman of the BOT board that a mistaken choice could lead to intervention by politicians and eventual economic catastrophe.
Tarisa issued the warning on Facebook as the panel was poised to choose a new BOT board chairman this afternoon. The committee will vote to appoint a replacement for current chairman Poramethi Vimolsiri, whose term expires at the end of September.
Tarisa’s intervention comes following months of pressure from the Pheu Thai-led government for the BOT to cut its policy interest rate.
She warned that the BOT board chairman could become a government tool, impacting foreign investors’ confidence in the country’s economic system.
She said that the selection panel should not appoint any permanent official to the post, as they may yield to government pressure and allow interference.
A central bank controlled by the government would be incapable of maintaining economic stability, which would suffer from short-term stimulus measures.
Tarisa noted that the BOT had so far resisted pressure from government to lower the policy rate.
The government was also infuriated by the central bank’s public opposition to its 10,000-baht digital wallet scheme, she said.
She voiced support for the BOT’s stance, saying the handout scheme would create a huge fiscal burden on Thailand and threaten the country’s credit rating.
Tarisa said that if the central bank loses its independence, the country’s credit rating could fall further, causing massive damage to business and the economy.
The government had ignored repeated warnings from the business sector not to interfere in BOT affairs, she added.
“As a result, panel members must show good conscience in selecting the new BOT board chair, to prevent economic catastrophe,” Tarisa said.
