No Change in Malaysian Monetary Policy
July 5, 2012
Between March 2010 and May 2011, four 25-basis point increases of Bank Malaysia Negara’s overnight target rate were implemented, but no further policy changes have been undertaken in the ensuing seven meetings of the Monetary Policy Committee. That includes today’s gathering after which officials announced that the key rate stays at 3.0%. A statement from officials says growth will continue to be propelled by domestic consumption and investment but adds that “with some excess capacity in the economy, the strength of domestic demand is not expected to result in inflationary conditions. Global energy and commodity prices are likely to be contained given the weak global conditions.” The uncertain external environment requires caution when considering any further increases in the policy interest rate of Malaysia.
Copyright 2012, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Malaysia
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