By Orathai Sriring and Kitiphong Thaichareon
BANGKOK (Reuters) – The selection committee for the chair of the Bank of Thailand expects to pick a candidate at the end of this month, the panel head said on Thursday, after a government effort to appoint a former finance minister failed due to recent political ties.
The role of chair, which is currently vacant, has no direct say in monetary policy but heads the board which picks four members to sit on the central bank’s monetary policy committee with the governor and two deputy governors.
The selection process has been controversial because the government has frequently clashed with the BOT over monetary policy and called for rate cuts, with many economists expressing concern about possible risks to the central bank’s independence.
“The selection committee has scheduled a meeting on February 28, and the selection is expected to be made that day,” committee head Sathit Limpongpan told reporters.
“In the meantime, time must be given to the central bank to examine the nominees’ qualifications,” he added.
The government’s initial candidate, party loyalist and former Finance Minister Kittiratt na Ranong, was reported to have been picked by the panel. However, in December the state advisory council said a recent political role meant he was ineligible.
The finance ministry has now nominated a former permanent secretary at the finance ministry, Somchai Sujjapongse, as its candidate, local media outlet Isra News Agency reported.
The central bank has backed former university head Surapon Nitikraipot, the news agency reported.
Somchai could not be reached for comment, and the central bank did not immediately respond to a request for comment.
The decision on the BOT chairman will be made by the seven-member panel of former bureaucrats, and must be approved by the finance minister, cabinet and king. The central bank is not represented on the panel.
On Tuesday, Finance Minister Pichai Chunhavajira said he wanted a good person for the job and that there should not be any more problems.
Before taking office in September, Prime Minister Paetongtarn Shinawatra once described the central bank’s independence as an “obstacle”.
The central bank, which left its policy rate unchanged in December after a surprise quarter-point cut in October, will next review policy on February 26.
Last week, Bank of Thailand Governor Sethaput Suthiwartnarueput told Reuters that the current policy interest rate at 2.25% was appropriate.
The position of BOT chair has been vacant since Porametee Vimolsiri completed his second term last September.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Editing by John Mair)
