So it is with the economic medicine of low interest rates and quantitative easing. The immediate consequences may be unpalatable, but the sooner we can get the economy on the mend,  2  For a single male, aged 65. 3  Indeed, if the savings were held in bonds of a maturity structure that matched the likely longevity of the individual, the two effects would cancel each other out. 4  BIS central bankers’ speeches  the sooner we can return policy to more normal settings and the better it will be for all of us – savers, businesses and employees alike. Thank you! BIS central bankers’ speeches  5
And finally, the further measures that need to be implemented by the banking institutions and the SMEs in a more challenging environment of rising costs. Economic and financial developments Going forward, the international economic and financial environment is expected to remain challenging with slower global growth and continued uncertainties in the international financial markets. The moderation in global growth is also occurring in an environment of increasing inflation arising from the higher energy and commodity prices. The Malaysian economy has been on a steady growth path averaging about 6% in the recent three years. In 2007, the economy expanded by 6.3% and has continued to register a strong growth in the first half of 2008. This stronger growth has been achieved despite the more challenging external environment and increased uncertainties in the international financial markets. One of the important contributing factors has been the successful transformation of the Malaysian economy in this recent decade which has resulted in a more balanced and diversified growth, in which the services and agriculture sectors have become increasingly more important drivers of growth. In addition, domestic demand has a more significant role in driving the growth. The stronger domestic demand and growth in the services and agriculture sectors have benefited the SME sector since the majority of the SMEs are operating in these sectors. However, the rising international prices of energy and commodities have confronted economies globally with rising costs and intensifying inflationary pressures.