MALAYSIA WILL NOT CHANGE NORMALISATION POLICY

KUALA LUMPUR, Dec 2 (Bernama) -- Malaysia will not change its normalisation
policy at this point in time despite Thailand's surprised interest rate increase
on Wednesday.

Bank Negara (Central Bank) Malaysia (BNM) governor, Dr Zeti Akhtar Aziz, said
the country's interest rate was at an appropriate level now.

Thailand's central bank surprised financial markets by raising its benchmark
interest rate by 25 basis points to two per cent and said there would be further
tightening to curb inflation, pushing up the baht.

"Based on assessment, our interest rate is at the appropriate level at this
point in time, given the outlook for inflation and growth," she told reporters
after the CEO Business Luncheon organised by International Chamber of Commerce
Malaysia here Thursday.

Zeti was responding to a question whether Malaysia would change its
normalisation policy after Thailand's move to raising its rates.

During the last Monetary Policy Committee meeting, BNM decided to maintain the
overnight policy rate at 2.75 per cent.

On the outlook for the mega Islamic Bank, Zeti said there would be an
announcement later this month.

"It is premature to comment now. It is still in our schedule to make an
announcement. But we are not saying when," she said.
-- BERNAMA