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