Malaysia Maintains Key Interest Rate

Malaysia Maintains Key Interest Rate

Malaysia's central bank left its key interest rate unchanged, as widely expected, as policymakers assessed the current stance appropriate to support growth.

The Monetary Policy Committee of Bank Negara Malaysia decided to maintain the Overnight Policy Rate at 3.00 percent.

“At the current level of the OPR, the stance of monetary policy remains accommodative,” the bank said in a statement.

The bank reiterated that it will continue to assess the balance of risks surrounding the outlook for domestic growth and inflation.

Looking ahead, the bank said growth prospects will be sustained by the more positive global growth outlook and stronger spillovers from the external sector to the domestic economy.

The bank expects growth in 2017 to be stronger than earlier projected.

Going forward, headline inflation is forecast to moderate on expectations of a smaller effect from global cost factors.