Thailand picks central bank board chairman after contentious search

Thailand is set to appoint a former bureaucrat as the new chairman of the Bank of Thailand (BOT), capping a contentious selection process that saw the government fail in a bid to push through the candidacy of a controversial former minister.

Dr Somchai Sujjapongse, 63, will be the new chairman of the BOT’s 12-member board, according to a person familiar with the matter. Dr Somchai, proposed by the Ministry of Finance, will assume office once his appointment is approved by the Thai Cabinet and the King, said the person, who declined to be identified as details of the matter are private.

Mr Sathit Limpongpan, who headed an independent selection panel, told reporters that the group had made a decision on Feb 28 but declined to divulge its choice. Mr Pornchai Thiraveja, a spokesman for the Finance Ministry, declined to comment. Krungthep Turakij newspaper reported Dr Somchai’s selection earlier.  

Dr Somchai, 63, was a compromise candidate after the government’s first pick, former 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. The BOT had nominated Professor Surapon Nitikraipot, rector of Thammasat University, for the job.

While the chairman does not decide on monetary policy, the person has a say in who joins the rate-setting panel and committees on financial institutions and the payment system, and Mr Kittirat’s candidacy was widely seen as a bid by Prime Minister Paetongtarn Shinawatra’s administration for greater sway over the central bank.

The BOT surprised markets this week by cutting borrowing costs just days after a direct appeal by the Prime Minister to reduce rates to help stimulate South-east Asia’s second-largest economy.

While the government failed with its nomination of Mr Kittiratt, a critic of the BOT’s hawkish monetary policy, it may still seek influence through the appointment of Dr Somchai, who from 2015 to 2018 was the top bureaucrat in the Finance Ministry. The new chair can give his views on broad economic conditions to the rate panel for its consideration, Finance Minister Pichai Chunhavajira said earlier in 2025, describing Dr Somchai as fully qualified for the job.

Ms Paetongtarn’s administration will also get an opportunity to pick the successor to incumbent governor Sethaput Suthiwartnarueput, a staunch advocate for the central bank’s independence, who has cut rates only twice in the past year despite relentless pressure from the government. Dr Sethaput’s five-year term ends at the end of September and he is ineligible for reappointment under central bank rules as he turned 60 earlier in 2025.

Dr Somchai, who has a master’s degree and PhD in economics from Ohio State University, previously headed several Ministry of Finance departments. He replaces Dr Porametee Vimolsiri, who completed his term in September but stayed on as temporary chair. BLOOMBERG