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Asia-PacificApril 4 2004

Engine of growth

The Banker’s Central Banker of the year for 2003, Tan Sri Dato’ Zeti Akhtar Aziz, is now in her second term at Bank Negara Malaysia. She helped Malaysia through the 1997-1998 financial crisis and has since presided over a dramatic consolidation of Malaysia’s financial sector. The country is now reaping the benefits.
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Q What is the outlook for interest rates this year? Do you see any inflationary trends in the Malaysian economy?

A Although we’ve experienced strengthened growth, we still have excess capacity in our system. In the second half of 2003 we saw capacity expansion beginning to take place. Therefore, we don’t see any inflationary pressures on the horizon, andinterest rate policy can remain supportive of the economy.

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