Please answer this question ASAP . Read all the questions Clearly and provide me the correct answer. I will give surely a like .

DOMESTIC DEMAND TO DRIVE GDP KUALA LUMPUR: Domestic private consumption is anticipated to chart healthy growth due to favorable labor-market conditions, aided by a slew of government initiatives and handouts, (credit rating agency, RAM Holdings Bhd) said. "The Malaysian economy expanded at a faster-than- anticipated pace of 5.1% in the first half of this year, thanks to its robust domestic demand growth despite significant external headwinds," the credit rating agency said in a press release yesterday. RAM said that private investment was expected to expand further driven by the Economic Transformation Programme and accommodative interest rates. However, it warned that if global economic conditions continued to deteriorate, heightened risk aversion could depress domestic demand in the future. "Public expenditure, meanwhile, should remain significant due to increased emoluments and supplementary spending this year. Nonetheless, Malaysia's export performance is not envisaged to improve, with no end in sight to the troubles plaguing its key trading partners. In contrast, import growth will likely be sustained by the strong domestic economy," RAM said. RAM said that global conditions remained weak as the European debt crisis and the uncertainties surrounding the fiscal situation in the United States limited the growth prospects of these economies. "In the near term, stable domestic economic and financial conditions, together with significant fiscal support, are expected to enable the Malaysian economy to grow at its potential output. Consequently, we have revised the country's GDP (gross domestic product) growth forecast from 4.6% to 4.9% for this year," it said. It also noted that the underlying favorable demand conditions and expectations of a change in fiscal policies may exert some longer-term upward price pressures on the economy. "In such a scenario, Bank Negara is likely to maintain its benchmark interest rate due to heightened growth risks from external weaknesses. Although global risk aversion will render the ringgit more volatile in the short term, the currency will eventually normalize because of its strong fundamentals," it added. (Source: The Star, 2012)

QUESTION

Discuss the types of policies that could explain the expectations of Bank Negara Malaysia to maintain the interest rate. (6 marks)