Bangko Negara Malaysia
September 7, 2016
The latest statement from Malaysia’s Monetary Policy Committee anticipates continuing domestic demand-led economic growth with weak exports as well as stable in-target inflation next year in an “environment of low global energy and commodity prices, and generally subdued global inflation.” Officials had cut the overnight policy interest rate by 25 basis points on July 13, that being the first reduction since July 2009. The 3.0% rate level was not changed again, nor does the statement suggest that it will be soon: “At the current level of the OPR, the degree of monetary accommodativeness is consistent with the policy stance to ensure that the domestic economy continues on a steady growth path amid stable inflation, supported by continued healthy financial intermediation in the economy.” Prior to July’s cut, the policy interest rate had been at 3.25% since a 25-bp hike in July 2014.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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