Bank Negara Malaysia

Malaysia’s 3.25% Overnight Policy Rate Not Changed after Latest Review

September 5, 2018

A statement released by Malaysia’s Monetary Policy Committee projects that inflation, which was at 0.9% in July, will move higher but sees core CPI holding pretty stable. Officials foresee Malaysia’s economy continuing to expand steadily but flag a few near-term risks like “heightened trade tensions, prolonged weakness in the mining and agriculture sectors and some […] More

Markets React as Trump Stirs Pot of Global Disorder Further

July 11, 2018

Share prices dropped 1.8% in China, 1.4% in Hong Kong, 1.2% in Japan, and 0.7% in Taiwan and Australia. In European markets, equities today are down over 1.0% in Germany, Italy, Spain, France and Switzerland, and the DOW dropped some 160 points in the first quarter hour of U.S. trading. There have also been outsized […] More

Bank Negara Malaysia

May 10, 2018

Malaysia’s overnight policy rate was kept steady by the Monetary Policy Committee at 3.25%, its level since a 25-basis point rise in January, which had been the first change since a cut in July 2016 and the first increase since July 2014. According to a released statement, continuing expansion is projected in both exports and […] More

Bank Negara Malaysia Implements First Interest Rate Hike Since May 2011

January 25, 2018

Since Malaysia’s last interest rate increase in 2011, there had been a pair of 25-basis point cuts in July 2014 and July 2016. But growth has been picking up and is expected to exhibit continuing upward momentum in 2018, with better support from exports and continuing strong domestic demand. Although inflation averaging 3.7% in 2017 […] More

Dollar Extends January Losses

January 25, 2018

The dollar declined overnight by 0.5% versus the yuan, 0.4% relative to the Swiss franc and sterling, and 0.2% against the euro, yen, and peso. President Trump arrived in Europe to attend the Davos World Economic Forum. His threat of protectionism is now transitioning into actual action. The Governing Council of the European Central Bank […] More

Bank Negara Malaysia

July 13, 2017

Malaysia’s central bank policy rate was maintained at 3.0%, its rate for the past year. There had been cuts of 25 basis points in both July 2014 and July 2016. Expectations of a possible rate hike later this year have faded as a spike in inflation is being unwound gradually. A statement released today indicates […] More

Bank Negara Malaysia

March 2, 2017

Malaysia’s central bank kept a 3.0% overnight policy rate and released a statement that projects continuing domestic demand-led growth of a bit over 4.0% and a modest rise in core CPI inflation. Total inflation will likely be more volatile than core because of uncertainties surrounding the international environment. Malaysia’s monetary policy interest rate was cut […] More

Bank Negara Malaysia

January 19, 2017

Following a percentage point of tightening in 2010-11 and a subsequent 25-basis point hike in July 2014, the Malaysian overnight money rate target had stood at 3.25% until a 25-basis point reduction last July. Inflation has eased following the lapse of Malaysia’s goods and services tax, prompting the incentive for the central bank rate cut, which […] More

Malaysia’s First Rate Cut Since Early 2009

July 13, 2016

Warning that ” the uncertainties in the global environment could weigh on Malaysia’s growth prospects,” a statement released by the Monetary Policy Committee of Bank Negara Malaysia justifies a 25-basis point interest rate cut to 3.0%.  External downside growth risks look greater: “Global growth prospects have become more susceptible to increased downside risks in light […] More

Bank Negara Malaysia

May 19, 2016

Malaysia’s monetary policy rate was left at 3.25% as expected.  It’s been at 3.25% since a 25-basis point increase in July 2014.  There was also 75 basis points of tightening in 2010 and a fourth 25-bp hike in May 2011.  A released statement today concluded, “at the current level of the OPR, the stance of […] More