If no more contenders come forward, these four candidates will form the list of governor hopefuls, which is due to be handed to the finance minister next week. They are in the frame to replace Thai central bank governor Tarisa Watanagase, when her four-year term ends in September.
Guidelines state that candidates must be less than 60 years of age, possess extensive economics or financial knowledge, and must not have worked in any political appointment for at least a year. The list thus far:
Q: What do jitters over European debt, stubbornly high unemployment and earthquakes have in common?
A: They have all been cited as reasons for central banks to delay interest rate hikes.
It’s not just economic crises that cause central banks to postpone tightening monetary policy. Since the beginning of the year, a number of political and natural disasters have pressured banks to keep rates low. Here is Money Supply’s list of the top three non-financial events that kept rates low. Are we missing any? Comments welcomed below.
The Bank of Thailand has ended restrictions on the amount Thai firms can invest abroad, raised the foreign investment limit for Thai mutual funds to $50bn from $30bn and cleared the way for wealthy Thais to spend more in overseas property markets, deputy governor Bandid Nijathaworn told a news conference.
The changes will reverse the effects of capital controls imposed in 2006 during a political crisis. The Thai stock exchange announced yesterday that it too would soften regulations, to encourage the listing of companies worth Bt100bn ($3bn).
The Bank of Thailand has agreed to keep the one-day repurchase rate unchanged at 1.25 per cent. The bank saw continued recovery ahead, driven by exports, tourism and consumption but noted that: “Asian economies are likely to recover sooner, giving rise to policy differentials which may lead to more volatile capital flows going forward.” The bank expects inflation to rise in 2010 although upward pressure from demand currently remains low.