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Interest rates accommodative for now: Zeti

KUALA LUMPUR: Bank Negara Malaysia said it will review the global economic conditions but stressed that the country's interest rates remain accommodative and supportive of the economy.

Its Governor Tan Sri Dr Zeti Akhtar Aziz said the central bank is steadier in its approach to interest rate adjustments as it relies on pro-growth measures in its monetary policy making.

"Of course we have to take into account of what is developing. We cannot live in our own world because all of us are affected by global developments," she said.

Zeti was speaking to reporters on the last day of the inaugural Asean Finance Ministers' and Central Bank Governors' Meeting here today.

Most of the Asian Central Banks have cut their interest rates this year to bolster their economic growth.

"Right now, our interest rates are accommodative, and very supportive of the economy. We will review conditions but right now our economy is on a steady growth path and the interest rates support that growth trajectory," said Zeti.

Zeti stressed that the Asean region would not pursue a single currency as the region is very diverse and does not have the pre-conditions for it.

"We are going for financial integration to achieve the same objectives of greater collective growth," she added.

Yesterday, former Indonesian Finance Minister Dr Mohamad Chatib Basri said the implementation of a single currency would not be easy, in light of the diverse economic structure and development levels of the 10 Asean member states.

"A single currency is probably the issue we really have to think carefully over. You can still have the integration and your own currencies," he said. -- BERNAMA

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