2023.07.0610:56:00UTC+00Malaysia Central Bank Keeps Rate Unchanged

Malaysia's central bank left its benchmark rate unchanged on Thursday after lifting it by a half-percentage point in May.

The Monetary Policy Committee of Bank Negara Malaysia headed by newly appointed Datuk Abdul Rasheed Ghaffour decided to hold the Overnight Policy Rate at 3.00 percent.

At the previous rate-setting in May, the BNM had lifted the interest rate by 50 basis points.

At the current level, the MPC said the monetary policy stance is slightly accommodative and remains supportive of the economy.

The central bank expects economic growth to continue in the remainder of the year driven by resilient domestic demand and tourism. The bank cited weaker-than-expected global growth as downside risks to the domestic growth outlook.

Regarding developments in prices, the bank said headline and core inflation are set to trend lower in the second half of 2023.

Risks to the inflation outlook remain highly subject to the persistence in core inflation, changes to domestic policy on subsidies and price controls and developments in global commodity price and market developments.