Malaysia’s central bank kept its key interest rates unchanged on Thursday as policymakers assessed the current stance to be accommodative and supportive of economic activity.
The Monetary Policy Committee of Bank Negara Malaysia decided to maintain the overnight policy rate at 3.25 percent. The outcome of the meeting came in line with expectations.
The MPC observed that there are heightened risks to global growth and financial conditions. These risks are being carefully monitored to assess their implications on macroeconomic stability and the prospects of the Malaysian economy.
Before moderating towards the second half of next year, inflation is expected to be higher following the impact of the Goods and Services Tax and the adjustments to domestic fuel prices. Underlying inflation is expected to remain contained amid stable domestic demand conditions, the bank said.
According to MPC, the prospects are for the Malaysian economy to remain on a steady growth path, with domestic demand being the key driver of growth.
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