Interest rate reductions around the world can be seen to be an insurance against a really poor outcome. It is important to remember that Sweden already had a very expansive economic policy on 11 September, with a low interest rate, weak krona and expansive fiscal policy. Given this, it is natural to withdraw the ‘insurance’ interest rate reduction when confidence and expectations have stabilised and the risks of a severe negative spiral have declined. The current economic situation So, can we say that confidence has returned or stabilised? To answer that question, I would like to describe how we see the current economic situation. The fact that willingness to take risks has increased can be seen in Standard & Poor’s credit spreads, which have returned to the same levels as prior to the terrorist attacks. In the USA, swap spreads had fallen since mid-September as no financial crisis occurred, however they have increased slightly since the start of the year, probably because of the Enron scandal. In Europe and Sweden, on the other hand, swap spreads have continued to fall to lower levels than prior to 11 September. Much of the statistics received since the beginning of December support the picture of international developments painted in the December Inflation Report. The signals that the subduing effect on demand is declining and that the level of activity is stabilising in the US economy have become clearer. Restraining factors, such as destocking and an adjustment in investments, appear to be gradually abating in strength.
Zamani Abdul Ghani: Growth and development of SME’s in Malaysia Opening address by Mr Zamani Abdul Ghani, Deputy Governor of the Central Bank of Malaysia, at the Top SMI Supporter Award Presentation, held at the Credit Guarantee Corporation Malaysia Berhad (CGC), Petaling Jaya, Selangor, 9 June 2008. *  *  *  Bismillahirrahmanirrahim Distinguished fellow members of the Board of Directors of CGC, Yang Berbahagia Datuk Wan Azhar Wan Ahmad,Managing Director of CGC Distinguished Guests and Representatives of Financial Institutions Members of the Media Ladies and Gentlemen Assalamualaikum w.b.t. and a very good afternoon On behalf of the Board of Directors and Management of the Credit Guarantee Corporation, (CGC), I am pleased to welcome you to this Top SMI Supporter Awards Presentation ceremony. This occasion is held in conjunction with the CGC's 35th Annual General Meeting that was successfully concluded just a while ago. I am pleased to note the encouraging representation made here today by fellow members of financial institutions. This signifies the importance that financial institutions attest to this CGC's annual award presentation ceremony. That said, allow me to record our appreciation to all of you for making this ceremony an important event in your calendar. This Top SMI Supporter Awards presentation ceremony, as you are all well aware, is an annual occasion. It recognises the active participation by financial institutions in CGC's credit guarantee schemes in particular, and contributions by financial institutions to SME development in general. We firmly believe such efforts should not go unnoticed.