The nomination for the next governor of the Bank of Thailand is set to be presented to the cabinet for approval on Tuesday, with strong indications that Vitai Ratanakorn, the president of the Government Savings Bank, will be the candidate put forth by Finance Minister Pichai Chunhavajira.
Sources within the Finance Ministry revealed that Mr. Pichai’s nomination of Mr. Vitai is driven by a desire for transformative changes within the central bank. Mr. Vitai’s vision for monetary policy reportedly aligns with the government’s intent to support the economy more robustly during challenging times.
Last month, a selection committee chaired by Satit Limpongpan, a former permanent finance secretary, identified two qualified candidates, narrowing the field to Mr. Vitai and Roong Mallikamas, the current deputy governor for financial institutions stability at the Bank of Thailand. To comply with regulations, a new governor must be appointed at least 90 days prior to the expiry of the existing governor’s term.
Mr. Vitai’s candidacy is further endorsed by former Prime Minister Srettha Thavisin, emphasizing a collective push for a shift in the central bank’s strategic focus. In a recent interview, Mr. Vitai expressed the necessity of adopting more aggressive cuts to policy interest rates to bolster economic stability. He underlined the importance of ensuring these rate reductions effectively cascade to commercial banks, urging them to lower their rates in response to the central bank’s actions.
Finance Minister Pichai confirmed on Monday that he would move forward with the proposal for Mr. Vitai’s appointment in the cabinet meeting, highlighting the urgency and significance of the central bank’s direction during this critical time. Previously, the name was not included in the agenda due to a late submission from the Finance Ministry, but it remains a pivotal moment for the institution.
This anticipated nomination reflects a hopeful strategy to fortify the economy through effective monetary policy leadership, potentially leading to a more resilient financial environment. The outcome will be keenly watched, as it may set the tone for Thailand’s economic response moving forward.