KL to alter interest-rate framework

KL to alter interest-rate framework

KUALA LUMPUR: Malaysia's central bank will switch to a new interest-rate framework within the next few months, news reports said Saturday.

The new framework is being introduced to take advantage of a strengthened banking system and improved global financial infrastructure, said the governor of the central bank, Zeti Akhtar Aziz.

"The window of opportunity will be taken during the period when interest-rate policy will remain unchanged to implement a new interest-rate framework," Zeti was quoted as saying to reporters.

"We are introducing the framework to enhance efficiency in the financial market, in particular in the money market and in the transmission mechanism for monetary policy," he said. "It should lead to more efficient pricing."

Zeti did not give details of the new interest-rate framework but said it would not impact banks' margins.-- dpa