Malaysia: Central Bank leaves rates unchanged due to global growth concerns
November 11, 2011
At its 11 November monetary policy meeting, the Central Bank decided to maintain the Overnight Policy Rate unchanged at 3.00%, a decision that was widely expected by market analysts. Interest rates have thus remained unchanged since May, when the Bank raised rates by 25 basis points. At the current 3.00%, the policy rate is at its highest level since December 2008. In the accompanying statement, monetary authorities stressed that global growth momentum has moderated in recent months hence greater weakness in the external environment is expected to affect regional growth prospects. On the domestic front the Bank highlighted that domestic demand will continue to be the anchor of growth, supported by private consumption and investment and reinforced by public sector spending. Meanwhile, inflationary pressures are expected to remain stable for the rest of the year and moderate in 2012.