'Interest rates at 3pc accomodative'

Malaysian interest rates currently at three per cent has remained accommodative, says Bank Negara governor, Tan Sri Dr Zeti Akhtar Aziz.

She said at a media briefing that however, interest rates that remained too low for too long will pose risks to the economy.

"It is important not to rely on interest rates alone to promote a sustainable economic growth," she said.

Meanwhile, there is no need to introduce tightening measures on consumer credit, says Zeti.

She said household debts were not at alarming levels with the declining trend in non-performing loans.

"All those who have affordability should be eligible to borrow," she said during a media briefing today.

She said the quality of loan portfolios have also improved.

Zeti also says financial institutions have demonstrated capacity to absorb volatile capital flows.

Given the maturity of the financial markets in Asia and strength of the intermediaries, there was now the capacity to cope with volatility in the market, she said.

In a media briefing today, she said the central bank would closely monitor hot money in the market and as well any surges that would be destabilising to the Malaysian market. -- Bernama