BANGKOK (Reuters) - Thailand's central bank still has room to cut interest rates but previous reductions have failed to prod commercial banks to boost their lending, Prime Minister Abhisit Vejjajiva said on Thursday.

"They do, but not much," he told Reuters, when asked if the Bank of Thailand could trim rates again after slashing its key rate by a combined 250 basis points to 1.25 percent since December.

"It's unlikely to achieve much more."

The BoT will review the rate on May 20, when analysts expect a 25 basis point cut to 1.00 percent, the lowest level since May 2000, when the bank began targeting inflation.

Abhisit said there was ample liquidity in the banking system and interest rates were low, but "clearly the banks are still reluctant to lend".

"The only thing preventing credit getting out is risk attitude," he said.

The Thai leader will travel to Hong Kong on Friday to give a speech aimed at convincing investors and tourists that Thailand is safe again after violent street protests in April.

"Thailand is back in business. There are still plenty of opportunities here. We have the key policies in place," the 44-year-old, Oxford-educated premier said.

Abhisit said he had not changed his economic forecast made at the time of the April incidents, when he forecast the export-reliant economy could shrink 4-5 percent this year.

The government is rolling out a 1.43 trillion baht (S$60.4 billion) package of stimulus measures and the programme is expected to run for a three-year period.

"If we can fully implement what we have on the table, it should be sufficient," he said, when asked if further measures would be needed.

On the baht, Abhisit said: "Our policy is to make sure it is stable and pretty much in line with regional currencies, which is what has happened."

Dealers said the Bank of Thailand had intervened this week to hold down the baht against a weakening U.S. dollar.