Latest news with #Sethaput
Mint
2 days ago
- Business
- Mint
Thai Cabinet May Endorse New Central Bank Governor on Tuesday
(Bloomberg) -- Thailand is poised to name its new central bank chief on Tuesday, ending a months-long process to find a successor to incumbent Governor Sethaput Suthiwartnarueput, whose rocky five-year tenure ends in September. 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. More stories like this are available on
Reuters
13-06-2025
- Business
- Reuters
Thai central bank chief sees need for greater inflation target flexibility
BANGKOK, June 13 (Reuters) - Thailand's central bank chief said there was a need for greater flexibility and tolerance regarding deviations from inflation targets, citing risks associated with excessive fine-tuning of monetary policy. Inflation may deviate from targets more often and more persistently even as it is anchored over time, Bank of Thailand Governor Sethaput Suthiwartnarueput said in a speech published by the central bank on Friday. "The ability of central banks to steer inflation, especially within narrow ranges, becomes more limited," Sethaput said in London on Wednesday, according to the transcript, noting price shocks and relative price trends. "We need to recognise clearly the risks associated with overly active and excessive fine-tuning of policy," he added. Thailand's annual headline inflation rate was negative in May, having been below the central bank's target range of 1.0% to 3.0% for the third consecutive month. It averaged 0.48% in the first five months of the year. In April, the BOT cut its key interest rate by 25 basis points to 1.75%, the lowest level in two years, due to risks from steep U.S. tariffs. The next rate meeting is on June 25. Inflation targeting should evolve towards increased flexibility, reducing the heavy emphasis on achieving precise numerical targets and allowing monetary policy to keep a sharp focus on the medium term, Sethaput said.
CNA
13-06-2025
- Business
- CNA
Thai central bank chief sees need for greater inflation target flexibility
BANGKOK :Thailand's central bank chief said there was a need for greater flexibility and tolerance regarding deviations from inflation targets, citing risks associated with excessive fine-tuning of monetary policy. Inflation may deviate from targets more often and more persistently even as it is anchored over time, Bank of Thailand Governor Sethaput Suthiwartnarueput said in a speech published by the central bank on Friday. "The ability of central banks to steer inflation, especially within narrow ranges, becomes more limited," Sethaput said in London on Wednesday, according to the transcript, noting price shocks and relative price trends. "We need to recognise clearly the risks associated with overly active and excessive fine-tuning of policy," he added. Thailand's annual headline inflation rate was negative in May, having been below the central bank's target range of 1.0 per cent to 3.0 per cent for the third consecutive month. It averaged 0.48 per cent in the first five months of the year. In April, the BOT cut its key interest rate by 25 basis points to 1.75 per cent, the lowest level in two years, due to risks from steep U.S. tariffs. The next rate meeting is on June 25. Inflation targeting should evolve towards increased flexibility, reducing the heavy emphasis on achieving precise numerical targets and allowing monetary policy to keep a sharp focus on the medium term, Sethaput said.
The Star
11-05-2025
- Business
- The Star
Thai central bank chief says uncertainty very high and limited policy space ahead over US tariffs impact
BANGKOK (Reuters): Thailand has limited fiscal and monetary policy room ahead of what could be a prolonged impact from steep US tariffs, but the economy is not in crisis despite facing a very high degree of uncertainty, its central bank chief has announced. Thailand is among the South-East Asian nations hardest hit by US President Donald Trump's trade measures and is facing a 36% tariff if a reduction cannot be negotiated before a global moratorium expires in July. Bank of Thailand Governor Sethaput Suthiwartnarueput said monetary policy was not fixed and the central bank was ready to adjust rates if the outlook changes, but room for that was limited. The BOT in April delivered a second consecutive cut to interest rates to 1.75%, the lowest level in two years, to support a lacklustre economy under pressure from U.S. tariffs. The finance ministry last week cut its forecast for growth in the exports- and tourism-reliant economy this year to 2.1% from 3% due to the impact of U.S. tariffs and a global slowdown. "The storm is coming. The real impact has not yet seen but will be felt in the fourth quarter," Sethaput told a press conference. "The impact will last long and will not end quickly." The economy is expected to hit the lowest point after the fourth quarter and "recovery will take a long time to return to normal", he said. FLOOD OF IMPORTS The United States was Thailand's largest export market last year, accounting for 18.3% of total shipments, or $54.96 billion. Washington has put its trade deficit with Thailand at $45.6 billion. The tariffs would immediately hit the manufacturing sector hard, but not as bad as during the pandemic, Sethaput said. Support measures would need to be targeted and Thailand's protracted talks on free trade agreements should be expedited, he added. A major concern for Thailand, he said, was a "flood" of imports from diverted trade that could impact a wider range of sectors such as textiles. The government is seeking to speed up the rollout of the rest of its vaunted $14 billion stimulus programme to support the economy, but Sethaput warned such a move could backfire. "With more imports, if we boost consumption, wouldn't that just help other countries?" he said. The recent movements of the baht were in line with market forces and the central bank would manage volatility, he said. Sethaput's term ends in September and he cannot seek another having reached retirement age. A selection committee will shortlist candidates to replace him by July 2. Sethaput on Friday said he hopes his successor to focus on long-term restructuring of the economy. (Reporting by Orathai Sriring, Kitiphong Thaichareon and Chayut Setboonsarng; Editing by Martin Petty) - Reuters
Bloomberg
09-05-2025
- Business
- Bloomberg
Thai Central Bank Sees Limited Policy Room After Three Rate Cuts
Thailand's central bank has limited 'ammunition' after recent interest rate cuts, according to Governor Sethaput Suthiwartnarueput, who called for more targeted measures to shield Southeast Asia's second-largest economy from the impact of US tariff. The Bank of Thailand is exploring additional measures, the timing of which will depend on the severity of the hit from US tariff on Thai exports, Sethaput told a briefing on Friday. The steps won't be broad-based but focused on sectors in need of help, he said.
