By Ying Xian Wong
Malaysia's central bank kept its benchmark interest rate unchanged again as expected, as the economic outlook holds steady and inflation stays in check.
Bank Negara Malaysia on Thursday maintained its overnight policy rate at 3.00%, where it has been since May last year. The decision was expected by all seven economists polled by The Wall Street Journal.
"At the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects," the central bank said.
Economists had largely anticipated the decision, as economic conditions in the country continue to be stable and inflationary pressures manageable.
There's no compelling reason for Bank Negara to change its stance, BNY head of markets strategy and insights Bob Savage said in a note.
While weakness in the Malaysian ringgit remains a factor to watch, the central bank unlikely to resort to rate changes to address that, analysts say.
Bank Negara said Thursday that external factors are the main concern behind ringgit volatility.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
07-11-24 0316ET
