WHATEVER decision Bank Negara Malaysia makes today on the direction of interest rates will be in the country's best interest, its governor Tan Sri Dr Zeti Akhtar Aziz said.Bank Negara's monetary policy committee meets today to decide on the Overnight Policy Rate, which effectively determines interest rates.Economists have said that the central bank is under pressure to raise rates in response to the sharp increase in inflation to a 26-year high of 7.7 per cent last month, from 3.8 per cent in May.Zeti told reporters in Kuala Lumpur yesterday that Bank Negara was monitoring the situation to gauge the impact of rising inflation.
She also said that the ringgit cannot be used as a monetary tool to stem inflationary pressures as its exchange rate is not static.The ringgit is a mechanism to facilitate international transactions, both trade and financial, Zeti said-www.btimes.com.my
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