New central bank governor envisions expanded role

More hands-on approach advised

- SOMRUEDI BANCHONGDUANG

Mr Vitai says the central bank wants to take on a more prominent role in revitalising the Thai economy.

The new governor of the Bank of Thailand wants to get more involved with the country’s structural challenges and real sector issues, expanding the bank's role beyond its traditional focus on economic stability.

Given the slower growth of the Thai economy and persistent structural problems, particularly declining productivity and competitiveness as well as high household debt, the central bank plans to take a more hands-on approach in addressing these challenges to support Thais and local businesses, governor Vitai Ratanakorn said at a seminar hosted by the Bank of Thailand's Northeastern Office on Friday.

Mr Vitai, who assumed office on Oct 1 for a five-year term, said he would cooperate with all relevant stakeholders and engage more closely with economic problems to help address the country’s structural weaknesses.

The central bank’s core mandate traditionally covers three pillars: inflation, economic growth and financial stability.

While inflation is slightly below the regulator's target range due to pressure from fuel and food prices, it is expected to return to the target in the medium term.