Interest rate 'at appropriate level'

THE country's interest rate is at an "appropriate level" and is supporting the economic recovery that is taking place, says Bank Negara Malaysia governor.

Tan Sri Dr Zeti Akhtar Aziz said despite the economic downturn, the foreign exchange market has remain orderly.

"That is the most important factor and it reflects the orderly fundamentals of the country's economy. Any decision on interest rates will be decided during another round of monetary policy meeting late this month," she said yesterday, after delivering her keynote address at the Asia-Europe Meeting. The event started yesterday and will end today.

Once the government stimulus is gradually withdrawn, Zeti said the private sector will be the main driver of growth following the country's economic recovery.

Asked if the ringgit should not be allowed to appreciate too much as economic growth could be affected, she said the current level of the currency reflected the country's economic fundamentals.

She emphasised that the country's exports have been resilient despite the stronger ringgit.

The ringgit had previously appreciated by much more than the current level, touching 3.13 to the US dollar in 2008. It depreciated against the US dollar at its opening yesterday morning to 3.3850 from 3.3690 on Friday.