"There is a room" for the accommodating policy, said Prasarn Trairatvorakul, the central bank's governor.

Next year's estimated headline inflation is 3.5 per cent and the policy rate is now 3.5 per cent.

The BOT held the policy rate steady in October, after series of rate hikes since July last year.

"We have raised the rate from last year" and the current rate is close to the normalised level, Prasarn said.

There are calls for a steep cut of upto 1 percentage point, as the economy is expected to contract in the fourth quarter due to severe floods.