Malaysian Overnight Policy Rate Left at 2.0%
October 28, 2009
Bank Negara Malaysia retained the cyclically low 2.0% policy interest rate as was expected and as it has done after each policy meeting since a 50-basis point reduction on February 24. That was the third cut following ones of 75 bps on January 21 and 25 bps on November 24. A statement released today by the Monetary Policy Committee noted broader-based signs of recovery in such areas as the labor market, consumer and business confidence, industrial output, trade and financing conditions. Negative Inflation now (consumer prices were down 2.4% in the year to August) is expected to revert to the black but remain subdued in 2010. GDP is likely to surpass 3% next year after being negative in 2009, but the lack of inflation or expected inflation is enabling the authorities to retain an accommodative bias that promotes recovery. The current stance was deemed “appropriate.”
Copyright Larry Greenberg 2009. All rights reserved. No secondary distribution without express permission.
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