Malaysia's central bank kept its key interest rate at 3.00% on Tuesday, expressing confidence that domestic demand will support economic growth at a time trade tensions and slowing global expansion poses risks to it. All 11 economists polled by Reuters expected BNM to keep its overnight policy rate unchanged, which gives it room for another cut - there was one in May - if growth falters later this year.
"While the prospects of monetary easing in the major economies have somewhat eased global financial conditions, heightened policy uncertainty could lead to excessive financial market volatility," BNM said. The current policy stance remains "accommodative" to economic activity, it added. BNM's 25 basis point (bp) cut in May, Malaysia's first since July 2016, came amid signs of slowing global growth, partly due to the United States-China trade war.
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