BANGKOK, Oct 8 (Reuters) - Thailand's central bank chief said on Thursday there is no rush to raise interest rates and monetary policy could not address structural issues constraining economic growth.
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The central bank left its key interest rate unchanged at 1.00% in August and its next monetary policy review is on October 28.
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Addressing a business forum on Thursday, Bank of Thailand Governor Vitai Ratanakorn said the economy was still seen growing about 2.3% this year, driven by investment.
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Flooding is expected to have some impact on GDP, although the full impact is still being assessed as the disruption has lasted longer and spread wider than initially expected, he said.
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Early assessments assumed the impact would be largely confined to Bangkok, but the broader extent of flooding could result in a larger economic hit, Vitai said.
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Late last month, Bangkok's governor declared the capital a disaster-affected zone after nearly 300 mm (12 inches) of rain swamped the city in just three days, as much as it typically receives in the whole of September.
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Inflation would slow to around 2% in 2026, from June's forecast of 2.8%, meaning there is no urgency to raise interest rates, unlike in other countries, he said.
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Annual headline inflation averaged 1.54% in the first nine months of 2026, within the central bank's target range of 1% to 3%.
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Exports are expected to grow 17% to 18% this year, up from the 14% expansion seen earlier, Vitai said.
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Export gains are partly offset by rising imports, limiting their overall contribution to GDP growth, he said.
Reporting by Orathai Sriring and Kitiphong Thaichareon; Writing by Martin Petty; Editing by John Mair
Source: Reuters