Malaysia Central Bank Keeps Rates On Hold

(RTTNews) - Malaysia's central bank maintained its benchmark rate on Thursday as the current level is considered to be conducive to sustainable growth amid price stability. The Monetary Policy Committee of Bank Negara Malaysia, led by Governor Abdul Rasheed Ghaffour decided to maintain the Overnight Policy Rate at 3 percent.

The interest rate has been at 3.00 percent since May 2023, when the bank had hiked by 25 basis points.

"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 bank said.

The bank expects the strength in economic activity to be sustained in 2025.

However, policymakers cautioned that outlook is subject to downside risks from an economic slowdown in major trading partners following significant uncertainties surrounding trade policies and lower-than-expected commodity production.

Inflation in 2025 is expected to remain manageable, amid the easing global cost conditions and the absence of excessive domestic demand pressures.

Gareth Leather, an economist at Capital Economics said no change in the interest rate is expected for this year.