BANGKOK (Reuters) – More than 800 leading Thai economists, including four former governors of the Bank of Thailand, warned on Saturday of political interference in selecting the central bank’s board chairman, saying it could damage long-term economic stability.
The government’s nomination of former Finance Minister Kittirat na Ranong, a ruling party loyalist and staunch critic of BOT Governor Sethaput Suthiwartnarueput, has sparked concerns over the central bank’s independence.
Since taking office last year, the Pheu Thai-led government, now under Prime Minister Paetongtarn Shinawatra, has been at loggerheads with the BOT, pressuring the central bank to cut interest rates in the Southeast Asian nation and raise its inflation target.
The BOT unexpectedly cut rates last month for the first time since 2020.
Should the BOT “carry out the wishes of the political group, then it would tarnish the credibility of the central bank, which must maintain a strong economic stability for the country in the long term,” the 830 economists said in a statement.
The group has previously expressed concern over having a candidate with close political connections who they say has shown an intention to interfere in BOT monetary policy decisions.
Government spokesman Jirayu Houngsub declined to comment on the statement. Kittirat did not immediately respond to a request for comment.
The independent committee selecting the board chairman meets on Monday after delaying its decision this week, saying it needed more time to “consider all aspects of information” amid the tension between the central bank and the government.
The board chairman is not involved in rate decisions but heads the panel that chooses policy committee members. The chair will also be involved in selecting the next BOT governor when Sethaput’s term ends in September 2025.
There are two other candidates for the role – a former permanent secretary of energy and a former university dean – who were nominated by BOT. Thai law allows the government to nominate one candidate for every two central bank nominees.
Once the seven-member selection committee picks a chairman, it decision requires the approval of the finance minister, the cabinet and Thailand’s king.
(Reporting by Orathai Sriring and Panu Wongcha-um; Editing by William Mallard)
