Bank of Thailand Governor Tarisa Watanagase, delivered a speech Tuesday on “Thai Economic Directions and Trends Next Year” at the central bank’s office in Chaingmai, said she believes that interest rate cut remains unnecessary for the current economic situation.

Tarisa addressed economist participants that Thailand’s economy would grow steadily although it had experienced many negative impacts in the past year involving in political crisis, insurgency in the South, baht volatility, and oil price surges.

She said Thailand fundamental infrastructure is still strong despite of external factors such as oil price hikes and ongoing U.S. sub-prime woes.

She projected that the economy would grow between 4.3 and 4.8 per cent this year and 4.5-6 per cent next year.

“We see no need for now that cutting interest rate is necessary in order to give economy a boost, because many indicators show that Thai economy has begun to recover,” she said.

Tarisa also warned exporters to pay greater attention to hedging against currency exchange risks because the baht fluctuation would be a key pressure to their future cost.