Malaysian Monetary Policy on Pause since May to Remain So
November 11, 2011
Bank Negara Malaysia had already made four rate increases, each of 25 basis points, in March, May, July of 2010 and May of this year, but policy has been paused for the past six months. The final policy meeting of 2011 decided to leave the overnight policy interest rate unchanged yet again at its current level of 3.0%.
Monetary officials have a sanguine view of inflation: “inflation is expected to remain stable for the rest of the year and moderate in 2012.” And like so many other developing country central banks, they are keeping a close watch on the euro debt crisis and its impact on financial market volatility: “the global economic outlook is expected to be weaker and international financial market conditions will remain highly uncertain and volatile going forward. While the domestic economy is expected to expand, these external developments could affect the overall growth prospects of the Malaysian economy.”
Six policy meetings will be held next year, the scheduled dates of which are January 31, March 9, May 3, July 5, September 6, and November 8.
Copyright 2011, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank Negara Malaysia
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