Kittirat Na Ranong, a former Finance Minister with close ties to the ruling Pheu Thai Party, is poised to become the next Bank of Thailand (BOT) board chairman, raising concerns about BOT independence and the possibility of political interference.

Several Thai media outlets reported that 66-year-old Kittirat Na Ranong was chosen as the next BOT board chairman on 11 November during a 5-hour selection committee meeting. If the appointment is approved by the Finance Minister, Cabinet, and King, Kittirat will become the 5th BOT board chairman.

Public criticism arose after it emerged that the government favoured Kittirat’s appointment over two other candidates nominated by the BOT: Kulit Sombatsiri, former Permanent Secretary of the Energy Ministry, and Suraphol Nitikraipot, PTT’s independent director.

As Kittirat has links to the ruling party, academics, economists, and a former Central Bank governor expressed concern that the government might be attempting to exert control over the Central Bank, an institution traditionally expected to maintain political independence. In the face of public criticism, the selection process was postponed from its initially scheduled date of 4 November.

Matichon reports that “Economists for Society,” an association with around 800 members, claims that Kittirat's appointment could undermine the credibility of the Central Bank and potentially jeopardise the country’s economic stability.

Kittirat has long been associated with the ruling Pheu Thai Party and its patriarch, Thaksin Shinawatra. According to Thansettakij, he entered politics in 2011 and served as a deputy minister under Yingluck Shinawatra’s administration, later becoming Finance Minister in 2012. In recent years, he has also been a vocal critic of BOT monetary policy, often clashing with BOT Governor Sethaput Suthiwartnarueput, an opponent of the government’s flagship “digital wallet” scheme.

Since taking office, the ruling party has repeatedly questioned BOT monetary policies. The Central Bank was called upon to cut interest rates and raise inflation targets, but refused to do so. In response, the institution drew criticism from PM Paetongtarn Shinawatra, who claimed that its monetary policy and independence were obstacles to economic growth. Speculation has arisen that the government will dismiss the current governor before his term ends in 2025.

In 2023, the BOT raised the benchmark rate to 2.50%, keeping it there, despite pressure from the government. Last month, however, the rate was unexpectedly lowered to 2.25%. The BOT denies that the change was the result of political pressure.

Finance Minister Pichai Chunhavajira insisted on Tuesday (12 November) that the BOT’s independence will not be compromised, as the responsibilities of the BOT chairman and board are governed by law.

According to the Bank of Thailand Act, the BOT board cannot exercise power arbitrarily since all decisions must comply with the law. More importantly, the BOT also has mechanisms designed to prevent outside interference and the BOT governor cannot be arbitrarily dismissed by the Bank’s chair, as some have assumed.