Narrowing Of Interest Rate Differentials Positive For Ringgit - BNM Governor
KUALA LUMPUR, Nov 7 (Bernama) -- The narrowing of interest rate differentials between Malaysia and advanced economies is positive for the ringgit amid volatility in geopolitical developments, said Bank Negara Malaysia (BNM).
Governor Datuk Seri Abdul Rasheed Ghaffour said changes in monetary policy by global central banks, and recent United States (US) elections have led to heightened volatility in global financial markets.
“Notwithstanding, we are closely monitoring global developments and stand ready to manage any spillover to domestic markets, including ensuring sufficient liquidity in the domestic foreign exchange market.
“Nevertheless, what remains constant is that the domestic landscape remains on firm footing, owing to the country’s solid economic prospects and fundamentals,” he said in his opening remarks at the launch of the InvestMalaysia Portal here, today.
He added that the sound economic fundamentals and the highly diversified economic structure have created a highly fertile environment for growth, which will also lend enduring support to the ringgit.
Abdul Rasheed noted that Malaysia has and continues to deliver resilient growth performance, averaging 4.3 per cent since 2011, higher relative to regional economies and rating peers.
“BNM will play our part and do what is needed to ensure both monetary and financial stability and that the financial market environment is conducive for sustainable investment and economic activities to take place.
“In addition, as detailed in the Financial Sector Blueprint 2022-2026, initiatives are being undertaken for the financial sector to support the transformation of the wider economy,” he said.
-- BERNAMA