Thai Cabinet May Endorse New Central Bank Governor on Tuesday
Finance Minister Pichai Chunhavajira told reporters on Monday that he has chosen one of the two finalists shortlisted by a panel to select the next Bank of Thailand chief, whose term would start Oct. 1. The nomination will be part of the weekly cabinet meeting's agenda, and if approved then be presented for the official royal endorsement.
Finalists are Vitai Ratanakorn, 54, president of the Government Savings Bank, and Roong Mallikamas, 56, currently a deputy BOT governor. Sethaput's successor will need to wade into monetary policies at a challenging juncture for Thailand, which faces crippling household debt, negative inflation, weak domestic consumption — as well as fallout from 36% US tariffs on Thai exports starting in August.
Vitai is seen as a proxy candidate of the Finance Ministry, as the GSB has spearheaded government efforts to provide financial relief to small businesses and households burdened by heavy debt in the post-Covid era. He was been criticized last week in an open letter by a former BOT governor, who said Vitai wouldn't be able to make independent decisions. Vitai, who has master's degrees from Chulalongkorn and Drexel universities, subsequently defended himself in a Facebook post by saying he could confidently govern 'without being influenced by any group.'
Roong, who has a PhD from the Massachusetts Institute of Technology, is seen as the policy-continuity choice. She's worked at central bank for nearly three decades, most recently as deputy governor for financial institutions stability. She was previously a member of the BOT's Monetary Policy Committee, which is responsible for setting the nation's benchmark interest rate.
Governor Sethaput, who reached the official retirement age of 60 in February, has come under intense pressure from two different prime ministers in as many years to lower interest rates and raise the inflation target to stoke an economy whose growth has lagged most of its Southeast Asian neighbors. He defended the Bank of Thailand's policies, saying surging household debt required a conservative approach.
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