INTERVIEW-Thai central bank could cut rates again if needed

BANGKOK, June 19 - Thailand's central bank is ready to cut interest rates again if needed and is not worried about any resurgence in inflation, Governor Tarisa Watanagase told Reuters on Friday.

The Bank of Thailand surprised markets at its last policy meeting in May when it failed to cut rates, keeping its policy rate steady at 1.25 percent.

Asked if the central bank was ready to cut interest rates further if the economy deteriorated, Tarisa replied: "Definitely, if it worsens. It depends on the necessity and whether it's appropriate."

She said the economy probably hit bottom in the first quarter, when it slipped into recession for the first time in a decade. But signs of a recovery were not clear, she said.

Earlier this month, Finance Minister Korn Chatikavanij said the baht's strength would hurt the country's export-driven economy and he urged the central bank to keep the currency at an appropriate level for trade.

But Tarisa said she had met exporters on Friday and they were not concerned about the level of the baht, although they wanted a stable currency. The baht remained competitive, she said.