Tags: economy | interest rates | Zeti
Written by Yong Yen Nie
Thursday, 24 September 2009 11:26
KUALA LUMPUR: Bank Negara Malaysia (BNM) believes the economy has seen its worst, but it is likely to maintain key interest rates for the time being.
Its governor Tan Sri Dr Zeti Akhtar Aziz said on Sept 24 that across the board, there were signs of improvement, while domestic demand has seen clear signs of recovery, having benefited from the fiscal stimulus and an accommodative monetary policy.
"We believe we have seen the worst. Across the board, there is improvement, but external factor has to see greater improvement in terms of external demand," she told the media on the sidelines of the SEACEN-BNM Banking and Financial Law School 2009.
Hence, Zeti said interest rates were at appropriate level to support demand and access for financing.
"Going forward, unless there are significant changes, these rates remain," she said.
She added that external trade is expected to improve in the third quarter and see positive growth in the fourth quarter.