Malaysia Set to Keep Key Rate Unchanged Despite Risks to Growth
3 weeks, 3 days ago

Malaysia Set to Keep Key Rate Unchanged Despite Risks to Growth

Live Mint  

-- Malaysia is poised to continue keeping its rate unchanged on Thursday, saving its policy ammunition as the US rolls out wide-ranging tariffs that could hurt the trade-reliant nation. Malaysian officials have remained optimistic about the country’s growth prospects, giving little reason for the central bank to immediately follow in neighboring Thailand’s footsteps with a rate cut. Here’s what to watch out for in the statement at 3 p.m. local time: Growth Risks Malaysia may be able to count on domestic spending and its investment pipeline to mitigate the potential effects of weakened external demand. “While the fiscal reform measures may exert some upward pressure on prices, their overall impact on inflation is expected to be limited, provided they are implemented gradually and in an orderly manner,” RHB Investment Bank Bhd economist Chin Yee Sian said in a research note on Feb. 21. Currency Outlook Pressure on Malaysia’s ringgit remains as the Federal Reserve may maintain a cautious approach to rate cuts in 2025, coupled with the potential for renewed US inflation, MIDF Research said in a note Monday.

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History of this topic

Global worries spur Malaysia’s first key interest rate cut since 2009
8 years, 8 months ago

Global worries spur Malaysia’s first key interest rate cut since 2009

Live Mint  

Kuala Lumpur: Malaysia’s central bank, seeing more clouds over the global economy after Britain’s Brexit vote, surprised markets by cutting its key interest rate for the first time in seven years in a bid to keep the country on a “steady growth path”. Global growth prospects have “become more susceptible to increased downside risks in light of possible repercussions from …

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