Assistant governor Atchana Waiquamdee was responding to private-sector fears that domestic interest rates would spike.

Lending rates might rise to 11-12 per cent in another three or four years but would be unlikely to hit the 18-19 per cent witnessed after the 1997 financial crisis.

She saw no upward pressure on interest rates, because of high liquidity in the world's financial markets. Also, countries have been increasing savings, because of their ageing populations. For instance, even though Japan keeps deposit rates at virtually zero, savings there are still bulging.

Inflation pressure is also not as strong as it was in the past, despite rising oil prices.

Competition among banks will help keep rates low. Banks that charge exorbitant rates could not survive.

She pointed out that the minimum lending rate had hit its lowest point in 20 years, so the chances for double-digit rates were slim.