Geoff Yu notes that Bank Negara Malaysia kept its policy rate at 2.75%, judging the stance consistent with price stability and sustainable growth. The bank sees Malaysia’s economy on track for around 5% growth this year, with low inflation and limited external cost pass-through. However, it highlights Middle East tensions, elevated commodity prices and tighter global financial conditions as risks to the broader growth and inflation outlook.
BNM holds rates, monitors risks
“Bank Negara Malaysia has kept its overnight policy rate unchanged at 2.75%, judging the current stance to be consistent with continued price stability and sustainable growth.”
“It said Malaysia’s economy expanded by 5.7% in H1 and is on track to grow around 5% this year, supported by stronger exports, resilient domestic demand, technology-related trade, tourism and investment.”
“Headline and core inflation averaged 1.8% and 2.0%, respectively, in the first seven months, with limited pass-through from higher external costs.”
“However, the MPC warned that Middle East tensions, elevated commodity prices and tighter global financial conditions remain key risks.”
“Policy therefore remains on hold, with officials closely monitoring inflation pressures and domestic demand.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
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