The Bank of Thailand (BOT) has room to turn more accommodative and could jump on the easing bandwagon if economic activity doesn't pan out as expected, said Governor Prasarn Trairatvorakul.
"Suppose [as] time goes by…consumption, tourism, government spending do not turn out as [expected]. Then we need to ask if we have the policy space to be more accommodative," Trairatvorakul told CNBC.
"The answer is yes," he said, adding that subdued inflation has opened up room for policy easing.
Like many Asian economies, Thailand faces easing inflation driven by the collapse in oil prices.
The consumer price index fell 0.4 percent on year in January, missing forecasts of 0.3 percent rise and down from the 0.6 percent in December. It was the first time consumer prices fell year-on-year since 2009.
Comfortable for now
For now, however, the majority of the BOT's monetary policy committee members are comfortable where rates are, he said.