Malaysia - RÄNTA

Bank Negara Malaysia held its overnight policy rate at 3 percent during its November meeting, as expected, saying growth will continue to be supported by resilient private spending. Household consumption should be driven by stable employment and wage growth while private investment is projected to remain modest. Meantime, inflation is expected to continue hovering at low levels.

Bank Negara Malaysia held its overnight policy rate at 3 percent during its September meeting, saying growth will continue to be supported by resilient private spending, alongside stable labour market and wage growth. Meanwhile, inflation is expected to remain low.

The Central Bank of Malaysia left its benchmark interest rate steady at 3 percent on July 9th 2019, after trimming it by 25 bps in the previous meeting, as widely expected. Policymakers said that the stance of monetary policy remains accommodative and supportive of economic activity. The Committee added that they will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.

The Central Bank of Malaysia lowered its benchmark interest rate by 25 bps to 3.0 percent on May 7th 2019, as widely expected. It is the first rate cut since July 2016. Policymakers said that the decision is consistent with the monetary policy stance of supporting a steady growth path amid price stability and it is intended to preserve the degree of monetary accommodativeness. The Committee added that they will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation. Policymakers also noted a moderated economy activity in the first quarter of the year and a rise in the inflation rate (0.2 percent in March from -0.4 percent in February). The annual inflation rate is projected to remain low mainly due to policy measures including price ceiling on domestic retail fuel prices and changes in consumption tax policy.

The Central Bank of Malaysia left its benchmark interest rate unchanged at 3.25 percent on March 5th, 2019, as widely expected. Policymakers said that the decision was consistent with the intended policy stance, amid a slowdown in external sector. For 2019, inflation is expected to be broadly stable compared to 2018. The Committee also noted that the economy maintains its underlying fundamental strength, with steady economic growth and stable in labour market conditions. Private consumption will remain the main driver of growth, still the domestic economy continues to face downside risks stemming from any further escalation in trade tensions and commodity related shocks.

The Central Bank of Malaysia kept its benchmark interest rate unchanged at 3.25 percent on January 24th, 2019, as widely expected. Policymakers that the decision in consistent with the intended policy stance and they will continue to monitor the balance of risks surrounding the inflation and domestic growth outlook. The Committee also noted that the economy maintains its underlying fundamental strength, with steady economic growth, low unemployment and a current account surplus. Private consumption will remain the main driver of growth, still the domestic economy continues to face downside risks stemming from any further escalation in trade tensions and commodity related shocks.