Malaysia central bank keeps key rate at 3.00% at final policy meeting of year

KUALA LUMPUR: Malaysia’s central banks kept its benchmark interest rate unchanged on Wednesday ( Nov 6), in line with business objectives, amid a good economic growth perspective and stable inflation.

Bank Negara Malaysia ( BNM) kept its overnight policy rate at 3.0 percent, which is where it has been since May 2023, at its final policy meeting in 2024. The central banks will remain steadfast on charges until at least 2026, according to Reuters polled by economists. &nbsp,

According to BNM, recent trends in economic activity are fueled by stronger domestic spending and increased trade activity.

Article and main prices remain modest, averaging 1.8 per share year-to-date, the banks said.

” Going into 2025, prices is expected to remain workable, amid the easing global price conditions and the absence of extreme domestic demand pressure”, it said in a statement.

The lender did, however, warn that the effects of government policies will still affect the inflation outlook.

This year the government cut costly cover subsidies for diesel, electric, and meat, among others, and plans to extend the plan to a commonly used transport gas in the middle of 2025.

In the budget last month, the government raised its forecast for economic growth in 2024 to a range of 4.8 per share to 5.3 per share, from 4 per cent to 5 per cent recently.

Official improve estimates for the second quarter indicated a 5.3 percent annual economic growth rate, which is slower than the 5.9 percent growth rate in the second quarter.