Thailand unexpectedly holds off naming new central bank chief

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Mr Vitai Ratanakorn was poised to be picked to run the Bank of Thailand.

PHOTO: REUTERS

BANGKOK – Thailand’s move to name veteran banker Vitai Ratanakorn as the next central bank governor was unexpectedly delayed after the planned nomination ended up not being considered at a Cabinet meeting.

Mr Vitai, president of the Government Savings Bank (GSB),was poised to be picked by Finance Minister Pichai Chunhavajira to run the Bank of Thailand (BOT),people familiar with the matter said on July 15.

Before entering the Cabinet meeting, Mr Pichai had told reporters he planned to propose the BOT chief appointment, but afterward said his submission was too late and set for next week instead.

“It’s an important appointment, and I submitted it a little too late. The Cabinet needs to look at this a little more carefully,” Mr Pichai said. He also denied any attempts to block the planned nomination.

The 54-year-old Mr Vitai, an advocate of lower interest rates and coordinated fiscal and monetary policy to help revive the faltering economy, is widely seen as a proxy candidate for the Ministry of Finance.

The appointment may renew concerns about the independence of the BOT, which under governor Sethaput Suthiwartnarueput has resisted pressure for rate cuts and a higher inflation target.

Similar tensions have been seen elsewhere, with US President Donald Trump having publicly derided Federal Reserve chair Jerome Powell and called for deeper rate cuts from the Federal Reserve.

In an interview with Krungthep Turakij newspaper on June 24, Mr Vitai said rate cuts are a “key and necessary tool” to tackle high household