The government expects a selection panel to quickly conclude the process of choosing a new Bank of Thailand chairman after previous nominee Kittiratt Na Ranong was was deemed unsuitable due to his ties with the Pheu Thai Party.
The seven-member panel of former civil servants and regulators will need to decide on the best strategy under the rules, Finance Minister Pichai Chunhavajira told reporters on Thursday.
He made the comment days after the Council of State, the government’s legal advisory body, ruled Mr Kittiratt out because of his previous role as an adviser to former prime minister Srettha Thavisin.
The ministry is talking to the panel about the way forward, said Mr Pichai.
“It should be quicker than before as we don’t have to start from scratch,” he said without elaborating.
Mr Pichai’s comments are the first official reaction from the government, signalling that it won’t press ahead with Mr Kittiratt’s candidacy as it risks future legal challenges.
Prime Minister Paetongtarn Shinawatra’s administration and the Bank of Thailand have been at loggerheads over a range of issues including interest rates and inflation targets, with Mr Pichai pushing for rate cuts to bolster a tepid economic recovery.
The selection panel can either pick one of the two remaining candidates — Kulit Sombatsiri, who has previously worked at the energy and finance ministries, and academic Surapon Nitikraipot — or restart the process. The delay in appointing a new chairman has allowed Porametee Vimolsiri, who completed his term in September, to hold temporary charge.
The government has been exploring ways to exert greater influence on the central bank, including by appointing its nominee as chair. Though the chairman is not involved in monetary policy meetings, he can evaluate the performance of the governor. The board later this year will be looking for a successor to Sethaput Suthiwartnarueput, whose term ends on Sept 30.
The candidacy of Mr Kittiratt, a former finance minister in the Yingluck Shinawatra administration, had also faced opposition from former central bank chiefs and economists. They argued that the appointment of someone with political links would cause irreparable damage to the institution’s credibility as they would serve the short-term interest of the parties they’re aligned with.