BANGKOK: Thailand's central bank sees room to cut its policy rate but it will need to consider the impact of flooding on consumption and output, the governor said on Friday.
"Inflation expectations have been quite stable, giving us a little room to cut rates. But we are deciding whether we need to prop up confidence in output and consumption," Bank of Thailand Governor Prasarn Trairatvorakul told reporters.
He said he expected consumption to pick up in the first quarter of next year and investment in the second quarter.
Prasarn's comments support market expectations of a rate cut at the next meeting on Nov. 30 to help business, affected by the severe flooding. Until recently they had expected the policy rate to be left at 3.50 percent.
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