By Orathai Sriring and Panu Wongcha-um
BANGKOK (Reuters) – Thailand’s state advisory council said the government-backed candidate for chair of the board of the central bank is ineligible because of a recent political role he held, although its recommendation is not binding on the government.
The council decided the candidate, Kittiratt na Ranong, was ineligible because he had served as a government adviser in the past year and could not be deemed politically neutral. It said the finance ministry had asked it to look at the nomination.
“This is because his appointment was from and due to political connections and he had a role controlling governance,” the council said in a statement on its website.
“Therefore, he is ineligible to hold the position of chairman of the board of the Bank of Thailand,” it added.
Kittiratt’s nomination, first reported by Reuters, has met strong opposition amid concern about political influence on the Bank of Thailand, including from more than 800 economists and academics, as well as several former central bank chiefs.
Reuters reported on Tuesday that his candidacy could be in doubt because he could not be deemed politically neutral.
The Office of the Council of State is an advisory panel that Thai governments can consult on legal issues prior to making decisions on policy and appointments. Council decisions are not binding, though they usually are adhered to by governments.
The selection by an independent panel of Kittiratt, a former finance minister and ruling party loyalist, has yet to be approved by cabinet.
Finance Minister Pichai Chunhavajira told reporters on Tuesday that if the council deemed Kittiratt ineligible, new candidates would need to be chosen.
The government has been pressuring the central bank this past year to cut interest rates, and Kittiratt has been a critic of its governor. He also clashed frequently with the central bank when he was finance minister between 2012 and 2014.
While the central bank chairman is not able to direct interest rates, the board does select members of the monetary policy committee.
The next chair will also have some influence on the selection of the successor to governor Sethaput Suthiwartnarueput, who completes his term in September 2025.
(Reporting by Orathai Sriring and Panu Wongcha-um; Editing by John Mair)
