Malaysia central bank holds rates steady, sees risks to global growth

[KUALA LUMPUR] Malaysia's central bank left its key interest rate unchanged at 3.25 per cent on Thursday, reiterating that was maintaining an accomodative monetary policy stance, while warning of risks to global growth that could hurt the country's export-focused economy.

Bank Negara Malaysia's monetary policy committee said that while the global economy continues to expand at a moderate pace, growth across advanced economies have been uneven.

"Looking ahead, while the overall global growth momentum is expected to improve, the growth forecast has been revised downwards due to weakening economic activity in a number of major economies," the central bank said in a statement.

"Consequently, the downside risks to global growth have increased. Volatility in the international financial markets has also risen."

REUTERS