Malaysia’s central bank kept its key rates unchanged as policymakers observed that the current stance is accommodative and supportive to economic activity.
The Monetary Policy Committee of Bank Negara Malaysia maintained the Overnight Policy Rate at 3.25 percent.
The MPC recognized that there are heightened risks in the global economic and financial environment. These risks are being closely monitored to assess their implications on macroeconomic stability and the prospects of the Malaysian economy, the bank said.
The central bank expects the economy to grow at a moderate pace this year. Headline inflation is forecast to be higher in 2016, given recent adjustments in administrative prices and the weaker ringgit exchange rate.
In terms of trajectory, headline inflation is anticipated to peak in the first quarter of 2016 and to moderate thereafter.
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