Bank Negara Malaysia (BNM), the central bank of Malaysia, has left its benchmark interest rate unchanged on Thursday as expected, as it sees the economy remaining on a solid growth.
All 11 economists polled by Reuters had predicted no change to BNM overnight policy rate, which has been held at 3.00 per cent since July 2016.
“At the current level of the OPR, the stance of monetary policy remains accommodative,” the central bank said in a statement.
The central bank said economic growth will be driven by domestic demand, supported by improving incomes and overall labour market conditions, new and ongoing infrastructure projects and sustained investments in the manufacturing and services sectors.
In the first half, the economy expanded 5.7 per cent from a year earlier.
Annual headline inflation of the 4th largest economic country in Southeast Asia eased to 3.2 per cent in July, slowing for a fourth straight month after hitting an eight-year high of 5.1 per cent in March.
In July 2016, the central bank cut the key rate by 25 basis points in the immediate aftermath of Britain’s Brexit vote, reports Reuters.