BoT chairman may be decided next month

The new board chairman of the Bank of Thailand could be selected next month, with a second meeting of the selection committee scheduled for Nov 4, according to a committee member who requested anonymity.
The member said at next month’s meeting, the committee plans to finalise the selection.
The first meeting last week did not reach a decision, requesting more time to thoroughly evaluate the qualifications of the nominees.
“We cannot confirm whether all three candidates will remain in consideration at the next meeting,” the source told the Bangkok Post.
One of the candidates is reportedly Kittiratt Na-Ranong, former deputy leader and chief economic strategist of the ruling Pheu Thai Party, who is likely to be nominated by the Finance Ministry as the government’s representative.
Mr Kittiratt, also a former commerce minister, has been a vocal critic of the central bank’s hawkish monetary policies and is a party loyalist.
The other two candidates, expected to be put forward by the central bank, are Kulit Sombatsiri, former permanent energy secretary, and Surapol Nitikraipot, president of the University Council at Thammasat University.
Meanwhile, the central bank’s Monetary Policy Committee (MPC) is holding a meeting today to discuss potential adjustments to the policy rate.
Most research centres predict the rate will be maintained at this meeting, with a 25-basis-point (bps) cut occurring in December.
Finance Minister Pichai Chunhavajira yesterday reiterated his call for a policy rate reduction.
He said the timing is right to ease borrowing costs, helping the economy as a lower rate means the country can better manage capital flows and stem a rally in the baht.
Mr Pichai said the final authority on monetary policy rests with the rate panel, though it should take into account all factors, such as low inflation, when making its decision.
A Finance Ministry source who requested anonymity said if the MPC lowers the policy rate by 25 bps, the immediate impact will be a reduction in borrowing costs for businesses and consumers. This could increase spending and investment, benefiting the economy both this year and next.
In terms of consumption, a lower interest rate usually reduces loan and credit repayments, giving households more disposable income. Consumers may feel more confident about spending on durable goods, such as cars or appliances.
For example, when interest rates fall, households may find it easier to purchase a new car or renovate their homes, leading to increased demand in the construction and retail sectors.
For businesses, lower financial costs can encourage investment in various projects, such as business expansion or technology upgrades, which have long-term benefits for productivity. For instance, a construction company might borrow at a lower rate to start a new project, creating jobs and stimulating the local economy, the source said.
Commerce Minister Pichai Naripthaphan said he prefers a rate cut to ease the burden on businesses and stimulate the economy.
“The decision of the committee is eagerly awaited. The governor should consider a rate cut, taking China as an example,” said Mr Pichai.
“Despite having an economy that is not as weak as Thailand’s, China recently introduced new stimulus measures, injecting 2 trillion yuan to boost its economy.”