Malaysia: BNM maintains its policy rate unchanged in July
July 13, 2017
Bank Negara Malaysia (BNM) decided to keep the Overnight Policy Rate unchanged at 3.00% at its 13 July monetary policy meeting, as widely expected by market analysts. The Bank has held the rate unchanged since July 2016.
Despite growing optimism about the Malaysian economy, BNM decided to keep monetary policy unchanged, citing that a degree of accommodation is still needed. While Q1 GDP surprised on the upside, volatility in commodity prices and geopolitical risks are still weighing on the country’s growth outlook. Regarding price pressures, the Bank sees inflation moderating in the second half of the year.