Central Bank of Malaysia: No Further Rate Change
November 6, 2014
Malaysia’s operating policy rate had been lifted from a base of 2.0% by 25 basis points each in March 2010, May 2010, July 2010, May 2011 and, most recently, July of this year. A statement from officials today defends the existing accommodative yet appropriate policy. It observes that “while the moderating trends [in exports and consumption] will affect the overall growth prospect, the Malaysian economy is still projected to remain on a steady growth path.” Although inflation is currently above target, “the absence of external price pressures and more moderate demand conditions are expected to mitigate the impact of these cost factors on the underlying inflation.” The risks of financial imbalances will be monitored in the future. There is no hint regarding how soon a sixth interest rate increase might be engineered.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank Negara Malaysia
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