The central bank also forecast a growth rate of between 4.5 and 5.5 per cent for 2010, depending on the additional economic measures to be announced by the Najib administration as well as external conditions.
“Indications point to that direction,” said Zeti at a media briefing today when asked if current economic signs pointed to a higher growth than in the fourth quarter of last year.
She said the indications include higher loan growth and continued positive export performance.
Prime Minister Datuk Seri Najib Razak voiced optimism that Malaysia could achieve economic growth of between 5 and 6 per cent this year.
Zeti added that the central bank, which recently raised interest rates to avoid potential build up of financial imbalances, would continue to monitor economic conditions but declined to confirm if more interest rate hikes were imminent this year.
“As growth strengthens, we will decide whether to continue normalisation (of interest rates),” she said.
Touching on the issue of bank consolidation, she said that it would be market driven and the central bank had no plans to prompt any consolidation.
Zeti declined to comment on the ringgit’s outlook but said that it would reflect fundamentals.
On the two new Islamic banking and five new conventional banking licenses that will be issued to foreigners, Zeti replied that an announcement will be made in either May or June.
Bank Negara expects Malaysia’s current account surplus to narrow due to faster growth in imports but would remain at a significant RM103.8 billion this year.
The central bank’s net international reserves increased by RM13.8 billion to RM331.3 billion last year, enough to sustain 9.2 months of imports and was 4.3 times Malaysia’s short term external debt.
The bank made a net profit of RM7.7 billion last year and paid out RM2 billion in dividends.
Interesting figures. Hope the country is truly in good hands.
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