Bank Negara Leaves Malaysian Credit Policy Unchanged as Expected
July 29, 2009
The overnight policy interest rate will remain at 2.0%. Thus Malaysian officials reached the same decision as expected and as they did after the prior two policy meetings on May 26 and April 29th. The next rate announcement is scheduled for August 25th. From a peak of 3.5%, Bank Negara had cut rates by 25 basis points last November 24th and followed that up with reductions of 75 basis points on January 21st and 50 bps on February 24th. A statement from the central bank observed improved financial market and domestic economic conditions and reiterated the point made after May’s meeting that sufficient monetary and fiscal stimulus appear to be in the pipeline already.
Copyright Larry Greenberg 2009.
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