Malaysia holds key rate, sees robust domestic activity

Malaysia's central bank kept its key interest rate unchanged at 3.0 percent on Thursday, pinning hopes on domestic demand to drive growth and offset weakness in the export markets of Europe and the United States. The decision was in line with a Reuters poll in which all 17 analysts had predicted that Bank Negara would keep the overnight policy rate steady for the ninth consecutive time at its final monetary policy meeting of the year.
"The sustained expansion in domestic activity has offset the weaknesses in the external sector," Bank Negara said in a statement. "Looking ahead, private consumption will be supported by income growth and stable employment conditions." Several central banks in the region and beyond have eased policy to support growth as the euro zone's debt problems, a sluggish recovery in the United States and slower growth in China weigh on demand for Asian goods.