We must have more mutual transparency. The rating agencies must declare clearly the details and the basis for their assessment. At that time, tight monetary policy was thought to be the appropriate macroeconomic stance. Conditions since then have changed. The shift in monetary and fiscal policies shows the need for flexibility in the light of changing conditions.
Economic recovery is our key objective.
We cannot recover if there is continuing recession. The earlier macroeconomic stance was based on the belief that there would be positive growth. Now that is no longer possible, so emphasis is being placed on preventing deeper recession. The interest rate is one factor that can influence capital flows and the value of the currency. But there are other external factors beyond our control, and raising interest rates will not guarantee the strengthening of the ringgit.