The cabinet on Tuesday endorsed a long-delayed proposal to appoint a former bureaucrat as the new chairman of the Bank of Thailand as the government seeks greater control over the monetary authority.
Somchai Sujjapongse will head the Bank of Thailand’s board once his appointment is endorsed by His Majesty the king and notified in the Royal Gazette, Finance Minister Pichai Chunhavajira said after a cabinet meeting.
He was picked for the job by an independent panel of retired bureaucrats and regulators almost two months ago.
The 63-year-old Somchai, who was nominated by the Finance Ministry, was seen as a compromise choice after the government’s first pick, ex-finance minister Kittiratt Na-Ranong, was publicly opposed by former governors and economists, and ultimately deemed unfit due to his links to the ruling Pheu Thai Party.
Though the BoT chairman doesn’t decide on monetary policy, he has a say in who joins the rate-setting panel and committees on financial institutions and payment systems.
The BoT has cut the policy rate by 50 basis points since October as the growth outlook for Southeast Asia’s second largest economy dimmed and domestic financial conditions tightened.
The government has also begun the process to pick a successor to incumbent BoT Governor Sethaput Suthiwartnarueput, whose five-year tenure comes to an end in September. The selection process will start with the panel inviting applications from aspirants before holding interviews and shortlisting at least two candidates for the consideration of the finance minister.
Under the central bank rules, the shortlist should be submitted to the minister at least 90 days before the incumbent’s term ends.