Bank Negara Malaysia
July 9, 2015
Malaysia’s overnight monetary policy rate will continue to be at 3.25%, the level since a 25-basis point hike in July 2014 and four earlier such increases between March 2010 and May 2011. A statement today from the Monetary Policy Committee speaks of increased global downside risks to growth, continuing moderate growth in Malaysia, higher inflation just ahead because of the GST tax hike, but contained core inflation because of “stable domestic demand conditions.” Domestic liquidity is “ample,” and monetary policy is considered “accommodative and supportive of economic activity. The MPC recognizes that there are heightened risks to global growth and financial conditions. These risks are being carefully monitored to assess their implications on macroeconomic stability and the prospects of the Malaysian economy. This is to ensure that the monetary policy stance is consistent with the sustainability of the overall growth prospects.” The statement’s conclusion leaves the door open to drop in interest rates if conditions warrant.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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