Growing Concerns: Bank of Thailand's Independence Amid Economic Rebound

[webfact]

 

The Bank of Thailand's independence has sparked a heated debate in recent days, as political figures clash over its autonomy. Pheu Thai Party leader Paetongtarn Shinawatra's remarks have ignited a feud between the central bank and the coalition government.

 

However, experts and officials are emphasizing the importance of the central bank's independence while also advocating for collaboration with government bodies. Former central bank governor Prasarn Triratvorakul highlighted the necessity of maintaining autonomy while working in tandem with state agencies to ensure financial stability.

 

Prasarn stressed the critical role of the central bank in overseeing financial institutions to avert risks and uphold stability. While this approach may not sit well with everyone, he emphasized that it is vital for long-term economic health.

 

Enrico Tanuwidjaja of UOB Group echoed the sentiment, emphasizing the need for a balanced approach between monetary and fiscal policies to prevent economic instability.

 

Economist Nonarit Bisonyabut underscored the detrimental impact of the government-central bank rift on the economy. He called for improved communication and cooperation between the parties to avoid further damage.

 

On the economic front, Asia Plus Securities (ASPS) projected that the rising inflation rate could deter the Monetary Policy Committee (MPC) from cutting interest rates. The government's push for rate cuts to support economic recovery, despite the central bank's reservations, has added fuel to the fire.

 

Prateep Tangmatitham, CEO of Supalai, argued for a reduction in interest rates to boost economic activity, especially for vulnerable groups hit hard by the pandemic.

 

Saravoot Yoovidhya, CEO of TCP Group, urged Thai authorities to learn from international models of collaboration between central banks and governments, likening the relationship to various departments working together towards a common goal.

 

As tensions simmer, the future of the Bank of Thailand's independence remains uncertain, raising concerns about its impact on Thailand's economic recovery.

 

Picture courtesy: Thai Rath

 

-- 2024-05-13

 

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[Mike Lister]

It's stunning that any government doesn't understand this very basic premise, it doesn't bode well for the future.

[Geoffggi]

I do think we know the true antagonist behind this debacle .........................LOL

[ChrisY1]

I wouldn't be at all surprised if control is taken away from the BoT....it would be a very dangerous situation, but this is the land of surprises!

[newbee2022]

2 hours ago, webfact said:

 

The Bank of Thailand's independence has sparked a heated debate in recent days, as political figures clash over its autonomy. Pheu Thai Party leader Paetongtarn Shinawatra's remarks have ignited a feud between the central bank and the coalition government.

 

However, experts and officials are emphasizing the importance of the central bank's independence while also advocating for collaboration with government bodies. Former central bank governor Prasarn Triratvorakul highlighted the necessity of maintaining autonomy while working in tandem with state agencies to ensure financial stability.

 

Prasarn stressed the critical role of the central bank in overseeing financial institutions to avert risks and uphold stability. While this approach may not sit well with everyone, he emphasized that it is vital for long-term economic health.

 

Enrico Tanuwidjaja of UOB Group echoed the sentiment, emphasizing the need for a balanced approach between monetary and fiscal policies to prevent economic instability.

 

Economist Nonarit Bisonyabut underscored the detrimental impact of the government-central bank rift on the economy. He called for improved communication and cooperation between the parties to avoid further damage.

 

On the economic front, Asia Plus Securities (ASPS) projected that the rising inflation rate could deter the Monetary Policy Committee (MPC) from cutting interest rates. The government's push for rate cuts to support economic recovery, despite the central bank's reservations, has added fuel to the fire.

 

Prateep Tangmatitham, CEO of Supalai, argued for a reduction in interest rates to boost economic activity, especially for vulnerable groups hit hard by the pandemic.

 

Saravoot Yoovidhya, CEO of TCP Group, urged Thai authorities to learn from international models of collaboration between central banks and governments, likening the relationship to various departments working together towards a common goal.

 

As tensions simmer, the future of the Bank of Thailand's independence remains uncertain, raising concerns about its impact on Thailand's economic recovery.

 

Picture courtesy: Thai Rath

 

-- 2024-05-13

 

Get our Daily Newsletter - Click HERE to subscribe

Look to Turkey, than you'll see what will happen when govt rules the Bank. Chaos, inflation up to 150%. I hope the bank will kick Shin out of their business.🙏

[hotchilli]

3 hours ago, webfact said:

However, experts and officials are emphasizing the importance of the central bank's independence while also advocating for collaboration with government bodies. Former central bank governor Prasarn Triratvorakul highlighted the necessity of maintaining autonomy while working in tandem with state agencies to ensure financial stability.

If the government control the banks then look put.

[Muhendis]

6 hours ago, Mike Lister said:

It's stunning that any government doesn't understand this very basic premise, it doesn't bode well for the future.

Bearing in mind that all politicians are deeply involved in money for one reason or another, I would suggest they have an excellent understanding of how an independant Bank Of Thailand works.

I would suggest it is in the interests of many of them to try and take control for personal enrichment rather than for the betterment of the country.

[john donson]

a thieving corrupted convinced family asking BoT to change the rules... mhhhhhh