Malaysia uses holistic approach for monetary policy

KUALA LUMPUR: Bank Negara uses a holistic approach to formulate Malaysia’s monetary policy by looking at various factors based on current and future economic conditions, said Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz.

Responding to a question on whether Japan’s recession would have an impact on the normalisation process of Malaysia’s interest rates, Zeti said: “Monetary policy is a forward-looking policy, so, we will look at not only current conditions but also future conditions.