Vitai Ratanakorn to Take Helm at Bank of Thailand Amid Economic Headwinds
Vitai Ratanakorn, the newly appointed governor of the Bank of Thailand, is set to begin his term in October — a period he acknowledges will be particularly challenging.
Southeast Asia’s second-largest economy is experiencing stagnation, ongoing tariff tensions with the United States, low industrial confidence, and underperformance in vital sectors like tourism and manufacturing.
“We have to admit the Thai economy is struggling,” Vitai told reporters last week. “What’s more concerning is that this sluggishness could persist.”
At 54, Vitai currently serves as President and CEO of the Government Savings Bank, Thailand’s largest state-owned financial institution. His proposed solution to Thailand’s economic malaise: aggressive interest rate cuts.
Last month, the Bank of Thailand left its key interest rate at 1.75%, its lowest level in over two years, following cuts in October, February, and April. Officials noted the importance of preserving room for further policy action.
“We need proactive easing,” Vitai told Krungthep Turakij on June 20, while still vying for the central bank’s top role.
“This isn’t about one or two minor cuts. We may need sustained and deeper reductions. Personally, I believe the rate can fall well below 1.75%.”
Political Friction and Policy Independence
The incoming governor’s stance may help ease tensions between the Bank and Thailand’s ruling Pheu Thai Party, which came to power in 2023. The party has openly criticized current governor Sethaput Suthiwartnarueput for not cutting rates more aggressively.
In fact, Paetongtarn Shinawatra, now Prime Minister, called the central bank’s independence an “obstacle” to solving the country’s economic problems back in May 2023.
While Vitai’s dovish stance aligns more closely with the government’s views, it has sparked questions about his ability to remain independent under political pressure — an issue he’s already addressed publicly.
“I am confident I can make decisions independently, grounded in principles and in the national interest, without being influenced by any group,” Vitai wrote on his Facebook page on July 8.
Background and Leadership Style
Vitai holds degrees in economics and law from Chulalongkorn and Thammasat universities, and a finance degree from Drexel University in the U.S. His professional experience spans the private and public sectors, including roles at Charoen Pokphand Group, Nok Air, and as Secretary-General of Thailand’s Government Pension Fund (which manages assets worth 1.4 trillion baht, or around $43 billion).
In 2020, he was appointed to lead the Government Savings Bank.
Former colleagues describe him as a pragmatic, consensus-driven leader rather than a theoretical economist.
“He’s more focused on getting things done than on academic debates,” said one former associate, speaking anonymously to the media.
Mixed Views on Qualifications
While Vitai’s experience in government finance is seen as an asset in navigating relationships with the finance ministry, some critics — including former Finance Minister Thirachai Phuvanatnaranubala — have raised concerns about his lack of macroeconomic policy experience.
“His long career in government banking is a strength, but the fact that he’s never operated at a high level in macro policy circles is a potential weakness,” Thirachai told Reuters.
