Zeti Akhtar Aziz reiterated the central bank's comments on Tuesday that keeping rates too low for too long could result in a buildup of fiscal imbalances.'It should not be looked at as tightening,' said Ms Zeti, she told reporters after attending an Islamic finance lecture.
'A distinction has to be made between normalisation and tightening because the policy thrust is still to remain accommodative especially when inflation is going to remain modest.'
World economy in 'progressive normalisation'
Leading central bankers believe a "progressive normalisation" of the world economy has taken hold, driven by emerging economies, the president of the European Central Bank said Monday.
"At a global level... there is a confirmation of the progressive normalisation of the economy," ECB chief Jean-Claude Trichet said on behalf of the participants in a meeting of central bankers in Switzerland.
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