Thailand’s cabinet has approved Vitai Ratanakorn as the next governor of the Bank of Thailand (BoT), paving the way for a leadership shift at the central bank during a period of economic uncertainty.
The appointment, announced Tuesday by government spokesperson Jirayu Huangsap, is subject to royal endorsement and would take effect on October 1.
Mr. Vitai, 54, will succeed current governor Sethaput Suthiwartnarueput, who is stepping down after reaching the retirement age and is not eligible for a second term.
The change in leadership comes as Thailand grapples with sluggish economic growth, weak domestic consumption, rising household debt, and growing pressure from global trade tensions, including steep tariffs imposed by the United States.
A former president and CEO of the Government Savings Bank (GSB), Mr. Vitai was selected over central bank veteran and deputy governor Roong Mallikamas.
Analysts say his appointment may signal a thaw in the sometimes frosty relationship between the central bank and the Pheu Thai-led government, which had previously clashed with Sethaput over monetary policy.
Widely seen as a candidate backed by the Finance Ministry, Mr. Vitai brings a track record of public-sector leadership and crisis response.
At the GSB, he played a key role in implementing financial relief measures for small businesses and households during the COVID-19 pandemic. His approach has been aligned with more proactive government efforts to stimulate the economy.
His nomination has sparked debate over the BoT’s independence. Critics, including a former BoT governor and a group of academics, have raised concerns about potential political influence, urging that the central bank be led by someone with deeper experience in monetary policy.
In response, Mrl Vitai took to Facebook on July 8, insisting that he can make independent, principle-based decisions in the best interest of the country.
Mr. Vitai’s monetary stance marks a departure from his predecessor’s cautious approach. In recent comments to local media, he called for a significant and sustained reduction in interest rates to revive the economy.
“This is a deep and prolonged downturn,” he said. “While interest rate cuts are necessary, they’re not enough. Additional supportive measures are required.”
Although the BoT’s interest rate decisions are made by a majority vote of the Monetary Policy Committee (MPC), Mr. Vitai, as the incoming chair, is expected to play a key role in shaping policy. His first meeting as MPC chair is scheduled for October 8. The next MPC meeting is set for August 13.
Last month, the central bank held its benchmark interest rate steady at 1.75%, citing the need to maintain limited policy space in case of future shocks. Economists, however, expect a more dovish turn under Vitai.
“The job at hand for the incoming governor will be to ensure that market participants perceive his policies as independent and based on economic fundamentals,” said Lavanya Venkateswaran, an economist at Oversea-Chinese Banking Corp in Singapore. She forecast another 50 basis points in rate cuts before the year ends.
Mr. Vitai has described himself as a “change leader” who enjoys tough challenges and organizational transformation. “I like challenges and I like a tough job,” he said.
Who is Vitai Ratanakorn?
Mr. Vitai has led the Government Savings Bank since 2020, managing more than 3 trillion baht (US$92 billion) in assets. He previously headed the Government Pension Fund, overseeing about 1.4 trillion baht ($43 billion) in public assets from 2018 to 2020, and served as acting president of the Islamic Bank of Thailand in 2017–2018.
He also held senior roles in the private sector, including as chief financial officer at Nok Air from 2011 to 2014 and senior deputy managing director at Charoen Pokphand Group in 2010.
Mr. Vitai holds a master’s degree in finance from Drexel University in the United States, as well as master’s degrees in political economy and business law from Chulalongkorn University. He earned his bachelor’s degree in economics from Thammasat University.
His selection comes as Southeast Asia’s second-largest economy navigates tepid consumer spending, rising geopolitical risks, and renewed political instability at home.
Observers say Mr. Vitai’s leadership may usher in a more collaborative era between the central bank and the government, and potentially a more aggressive monetary response to help lift the economy out of stagnation.
