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 was needed to preserved the previously desired monetary conditions. After keeping the 3.0% policy interest rate after this year’s first review, central bank officials released a statement that foresees domestic demand-led growth, somewhat higher inflation, which averaged 2.1% in 2016,  and possible episodes destabilizing financial imbalances “arising from global risks of protectionism, geopolitical developments and commodity price volatility.”

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without expressed permission.



Comments are closed.