Bank Negara Malaysia
November 9, 2017
A statement released after this year’s last scheduled meeting of 2017 announces that the Central Bank of Malaysia’s overnight policy will stay at an accommodative 3.0% but includes a hint that a rate hike may be somewhere in the pipeline:
Given the strength of the global and domestic macroeconomic conditions, the Monetary Policy Committee may consider reviewing the current degree of monetary accommodation. This is to ensure the sustainability of the growth prospects of the Malaysian economy.
The rate has been at 3.0% since a cut of 25 basis points in July 2016. There was a similar reduction enacted in July 2014, too. But now, Malaysia’s domestic demand-led recovery looks more deeply entrenched, and inflation is at the upper end of the target, in part reflecting firmer oil prices. Dates for the six scheduled 2018 policy reviews have been set. The two-day meetings will culminate on January 25, March 7, May 10, July 11, September 5 and November 8.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Malaysia
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