Ardent rate cutters at central banks: There is a price to pay

Thailand will discover that central bank obedience isn't good for it

- DANIEL MOSS

Thailand was saddled with US tariffs and forced to call it a good deal. But the country's besieged political leaders have managed a feat that President Donald Trump has so far found elusive. In naming an advocate of aggressive monetary easing to be the next central bank chief, they got the financial manager they want—or think they want. The benefits may be short-lived.

After a campaign to pressure the Bank of Thailand to juice growth, the Thai cabinet tapped a critic of the incumbent governor to lead it. More stimulus is warranted: Deflation is a threat, business confidence is low and recession is a real possibility. The bank has eased policy this year, though it is reluctant to speed up. Outgoing chief Sethaput Suthiwartnarueput has defended the institution's independence, while being careful not to rule out additional reductions. Things seem stuck.