Bank Negara Malaysia chief Zeti Akhtar Aziz said on Thursday the authorities are able to deal with the impact of high energy prices and that interest rates are supportive of growth.

"We have rising commodity prices and we have to look to make an assessment whether it is temporary arising from disruption in supply or whether it is something more permanent," Zeti told reporters in Kuala Lumpur.

"We've seen this kind of levels of energy and commodity prices before and we have the capability to deal with it.

"Right  now, interest rates are supportive of growth."

The central bank will hold its regular policy meeting on March 11, and most economists believe it will hold rates steady due to the moderate growth outlook for the first half and manageable price pressures.

Malaysian economic growth is expected to slow from last year's 10-year high of 7.2 percent despite the boost from high crude oil and palm oil prices as demand for export moderates.

"Compared to 2010, there is slower growth so this is something we want to ensure that it is a steady and sustainable growth and it should be in the region of 5-6 percent (in 2011)," Zeti said.

"With that growth must be also job creation, there is a tremendous focus on achieving that not only with monetary policy supporting it but other policies."

- Reuters