Zeti: Monetary policy based on domestic conditions

KUALA LUMPUR: Bank Negara Malaysia will only change its stance on monetary policy, where the benchmark interest rate has remained at 3% since last May, if and when inflationary pressure builds up.

BNM governor Tan Sri Dr Zeti Akhtar Aziz said on Thursday that conditions show that the inflation front has improved, there is a moderating trend and this will continue unless there are any developments. Monetary policy would be based on domestic conditions, she said.

“The current interest rate level is appropriate for the current condition,” she said, adding that projections on economic growth from the International Monetary Front were within the central bank's expectations of 4% to 5% growth.

“Our conditions show that the inflation front has improved, there is a moderating trend and this will continue unless there are any developments. The current interest rate level is appropriate for the current condition,” she said.

Zeti added that projections on economic growth from the International Monetary Front were within the central bank's expectations of 4% to 5% growth.