Malaysian Central Bank Keeps Overnight Policy Rate Unchanged
Bank Negara Malaysia kept its Overnight Policy Rate unchanged at 3.00%, failing to follow the trend set by the recent monetary policy decisions in Indonesia and the Philippines. Today's decision is in line with virtually unanimous consensus as well as our bias.
- BNM pointed to an improvement in domestic economic activity and said that its current policy stance is supportive of the economy and will continue to be conducive to sustainable growth.
- The central bank noted that Malaysia's headline and core inflation moderated as expected, while price pressures are expected to "remain modest" next year. Furthermore, "risks to the inflation outlook remain highly subject to changes to domestic policy on subsidies and price controls, as well as global commodity prices and financial market developments".
- Click here to see the full statement.