The Bank of Thailand ( BOT ) chief said in a speech transcript released on Monday ( Nov 4 ) that central banks ‘ independence is being challenged and that they have been under greater pressure lately than at any other time in the last ten years.
Governor Sethaput Suthiwartnarueput made remarks at the BIS annual meeting in Switzerland, an unsigned text of which the BOT released on Monday, stating that “central bank freedom in many countries, including Thailand, is being challenged despite having done a fair job over the past decades.”
” If we allow central banks freedom to be eroded, we may not be able to offer on our main mandates”, the governor said.
The conference took place on Jun 28, according to the BIS site, which on Oct 30 published a report with recordings of remarks by some central banks governors, including Sethaput, at the celebration.
The BOT removed the text from its website later on Monday. It did not respond to a remark demand right away.
The BOT and Thailand’s government had previously been at odds with one another over economic policy, with the central bank facing near-daily pressure to lower interest rates to encourage development until next month.
The BOT unapologetically decreased its benchmark rate to 2.25 per cent in October, but the company has since stated that it is not moving forward with an easing cycle and that it is “recalibration” rather than a” caving to democratic force.”
Former BOT governors expressed concern last week that a candidate for the position of president of the central bank table had” close political ties,” which was widely assumed to be a reference to the president’s nominee, a critique of the latest governor.
The Thai government has maintained it respects the BOT’s democracy, but wants it to do more to help it revive the economy, expansion of which has been tepid.
The BOT stated on Monday that the decision on a member had been postponed until the following week, which is the next time it has been done. The finance minister claimed that the part only had limited authority and that the delay would not have an impact on the work of the central bank.
Sethaput also noted that unconventional policies like expanding balance sheets and enshrined crisis steps had enlarged central bankers ‘ footsteps in private markets and raised expectations about what a central banks can achieve in notes made at the conference in Switzerland.
” It adds more boundaries as well as moving the ball,” the company claims. As expectations boost, it becomes harder to ring-fence our reputation, trust and the situation for central banks independence”, he said.