Malaysia central bank holds policy interest rate at 3%

[KUALA LUMPUR] Malaysia's central bank kept its benchmark rate at 3.00 per cent on Wednesday as expected, amid expectations of continued volatility in regional financial and foreign exchange markets.

All 13 economists in a Reuters poll had forecast no change to the overnight policy rate (OPR).

Bank Negara Malaysia (BNM) said the economy will continue to be driven by the private sector with some support from exports. "Going forward, private sector activity will remain the key driver of growth," the central bank said in a statement.

In July, BNM unexpectedly cut its key rate by 25 basis points. Prior to that, the rate had been held steady for seven years at 3.25 per cent.

REUTERS