On a Tuesday night, Bank of Thailand Governor Vitai Rattanakorn surprised over 100 journalists involved in the bank’s media group chat with a casual message: “I just came to say hi.” This direct outreach marks a significant shift in the bank’s usually reserved communication style.
Since taking office, Vitai has made it clear that he intends to adopt a more approachable demeanor. At 55, he is looking to replace the traditionally staid image of the Bank of Thailand with one that fosters better relationships, especially after previous tensions with the government.
In his message, he mentioned, “Leaving immediately,” and encouraged journalists to reach out directly if they had any issues. This approach essentially allows him to bypass the bank’s communication team, indicating a new level of accessibility at one of Thailand’s key institutions. It’s a bit like the system in the Philippines, where reporters can communicate directly with the governor through apps. Normally, monetary policy leaders can seem quite distant.
According to Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, “It would be generally welcome to see new governors, and perhaps a bit more positivity from central bankers worldwide.” This is certainly important, given the substantial influence of their decisions.
In addition to engaging with the media, Vitai is reaching out to the private sector as well. Last month, he, along with bank executives, met with leaders from the country’s largest manufacturing group, which is grappling with issues like a strong baht and U.S. tariffs.
Such shifts in tone naturally happen during pivotal times. With limited room for interest rate cuts and inflation staying below targets, effective communication might be one of the central bank’s most potent tools. Current forecasts suggest that Thailand’s economy may only grow by about 2% this year, which is significantly slower than neighboring countries like Vietnam and Indonesia.
Vitai’s appointment has drawn attention from the outset, mainly due to his close connections with the government, raising concerns about the central bank’s independence. Before this role, he was in charge of a government savings bank and proved instrumental in post-COVID-19 recovery initiatives targeting small businesses and households.
Under his leadership, there seems to be a potential for a more harmonious relationship with the Treasury, which might reduce the friction seen in the past. His long-standing friendship with the newly appointed Finance Minister Eknithi Nitithanprapath also plays a role here.
Economist Erica Tay from Maybank Securities noted, “It looks like Bitai has a good working relationship with the Ministry of Finance.” She emphasized that their joint public appearances suggest both entities are aligned. This cooperation sends a positive message to the market.
In the past, the former governor, Sethaphut Sutiwartnarepto, often found himself at odds with the previous PRC-led administrations, which raised worries about the government’s influence on the bank’s autonomy.
During his initial media session, Vitai emphasized, “The central bank must be independent in its operations, but we are ready to cooperate with other institutions to help support the economy. Our ultimate goal is to take care of people and society.” It looks like a new direction is in the works.
