Malaysia holds rate while policy makers study GST impact on price, growth risks

Kuala Lumpur

MALAYSIA's central bank left its key interest rate unchanged for a fifth straight meeting, refraining from adding stimulus as policy makers assess the impact of a new tax on price pressures and consumption.

Bank Negara Malaysia kept the overnight policy rate at 3.25 per cent, it said in a statement in Kuala Lumpur on Thursday. The decision was predicted by 21 of 22 economists surveyed by Bloomberg News, with one forecasting a 25-basis point cut.

With above-5 per cent growth and inflation near the slowest since 2009, Bank Negara Malaysia has held back from joining dozens of global counterparts in easing monetary policy this year. Central bank governor Zeti Akhtar Aziz signalled last month she sees no need for a rate cut in the near future, barring the threat of …