Current economy levels will sustain: Zeti

KUALA LUMPUR: The country's economy will be sustained at the current level going into the second half of this year supported by the robust domestic economy, says Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz.

She said the business environment in the country was very supportive with improved level of competitiveness, efficiency and continued access to financing as well as an orderly market to raise funds.

"The bank has remained solid and sound with their favourable profitability, so all these are positive for our economy," she told reporters following a presentation of the Labuan Financial Services Authority's annual report here today.

She said despite the economic crisis in Europe, the central bank was maintaining the growth forecast of four to five per cent for Malaysia this year.

Zeti said the central bank had already priced-in the effect of the Euro zone economic crisis into the forecast.

"In fact, it declined only recently and we had expected the moderation to happen earlier."

She said Bank Negara was confident of the projected growth range given the robust domestic demand and private investment activities.

What is also particularly encouraging is the private sector investment, she said, adding that the sector is expected to contribute to the current growth and future growth.

On the overnight policy rate, she said it has been very supportive of the economic growth.

Loan growth has been in the 12 per cent range, indicating that the interest rate level is not an inhibiting factor for the domestic economy's growth, she added.--BERNAMA

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Current economy levels will sustain: Zeti

KUALA LUMPUR: The country's economy will be sustained at the current level going into the second half of this year supported by the robust domestic economy, says Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz.

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