She said Malaysia has demonstrated that its economy was resilient and the volatility in the capital flow was not unique to the country.
"We saw inflows as well as reversals and we believe our financial system can cope with this kind of volatility.
"As it has generated excess liquidity in our system. Of course, we absorb and sterilise these inflows, but at the same time, we've implemented the macroprudential measures to rein in the too rapid credit growth," she told reporters after the Kijang Emas Scholarship Award ceremony here today.
Zeti was asked on a report that the International Monetary Fund Asia and Pacific Department said capital had started to flow back into Asia, perhaps due to the strong market fundamentals.
This could also be due to the United States' Federal Reserve's plan for an orderly and gradual tapering of its quantitative easing.
The report stated that Asian economies have to be more vigilant and restore their policy space such as checking their fiscal deficit levels and reining in credit booms.
Zeti said that with the current dynamic economy environment, the central bank would like to monitor it very closely and would take the necessary action if needed.
Bank Negara's concern has been not to have the risk of too high level of indebtedness, especially by the household sector as well as the risk of the build up rising property prices, as that would affect affordability.Last 4-para.
"That has been the motivation of the series of policies that we have implemented in stages because we don't want to have an over-adjustment.
"We're please with the outcome of the policies," she said.
Zeti said should a stringent and aggressive policy was introduced, it would result in an over-adjustment.
She believed the credit growth has reached a level that has plateaued and now it is nine per cent in the region.
"It was growing somewhere around 12 to 13 per cent earlier," she added.