Thailand's central bank independence in focus as former finance minister nominated as chair

This photo shows The Bank of Thailand REUTERS-Yonhap — This photo shows the Bank of Thailand's logo. Reuters-Yonhap

SEOUL, November 13 (AJP) - Thailand's central bank selection committee on Monday nominated former Finance Minister Kittiratt Na-Ranong, a key figure in the ruling Pheu Thai Party, as the next board chairman, pending cabinet and royal approval.

The nomination has sparked protests over central bank independence, with four former BOT governors and 830 economists issuing statements opposing the appointment, news reports said. They submitted a petition with 50,000 signatures on Monday, arguing the appointment could compromise BOT's autonomy.

Kittiratt, who previously clashed with BOT over monetary policy during his 2012 to 2014 tenure as finance minister, has been critical of the central bank's hawkish stance. While the board chairman cannot directly intervene in monetary policy, they influence the selection of monetary policy committee members and the central bank governor.

The development follows BOT's first rate cut in over four years last month to 2.25 percent from 2.50 percent, after repeated public demands from the government for monetary easing despite the central bank's initial resistance.

AJP