Bank Negara Malaysia (BNM) is not concerned over the possible downgrade to "junk status" by Credit-Default-Swap (CDS) Traders as the downgrade was not by a ratings agency.
Governor Tan Sri Dr Zeti Akhtar Aziz said the "junk status" is only how the market tells their story and a similar thing occurred during the 1998 Asian Financial Crisis.
"However, a year after the financial crisis, we managed to prove to the world what can we do.
"We have to be firm so investors will look at how we assess the situation," she told reporters after launching the Financial LATeracy Exhibition at BNM Museum and Art Gallery here, today.
Standard & Poor’s has an A stable rating for Malaysia while Fitch Ratings upgraded its ratings to A stable.
The ringgit is pressured by highly volatile global developments in the United States, China and the Middle East.
At 5pm today, the ringgit was quoted at 4.4160/4240 versus the US dollar.
"The important thing is for the economy to have the strength and resilience to ride it out.
"However, we are not facing any pressure to increase interest rates as the current level is accommodative and supportive of economic activities," she said, reiterating BNM's GDP growth outlook of 4.5-5 per cent for 2015.
In the latest monetary policy statement, the Central Bank decided to maintain the overnight policy rate at 3.25 per cent.
Zeti said the central bank was seeing steady growth in credit, which meant that the challenging environment has not hampered borrowings from the financial system to support businesses especially for small and medium enterprises which have been experiencing double-digit growth.
She also said it would not be possible to fix the exchange rate given the highly dynamic environment.
"We do not have any particular level because this is a dynamic environment, therefore, where other currencies are also adjusting, we cannot keep ours at one specific level because it will be misaligned," Zeti added.
Bernama
Mon Sep 28 2015
ZETI: The 'junk status' is only how the market tells their story and a similar thing occurred during the 1998 Asian Financial Crisis. - File Photo
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.