Malaysia's central bank holds key rate as growth remains steady

[KUALA LUMPUR] Malaysia's central bank kept its benchmark rate unchanged on Thursday as expected, as it sees the economy maintaining steady growth and inflation has moderated.

All 12 economists polled by Reuters predicted change to Bank Negara Malaysia's (BNM) overnight policy rate, which has held at 3.00 per cent since July 2016.

"At the current level of the OPR, the stance of monetary policy is accommodative and supportive of economic activity," the central bank said in a statement.

BNM said growth will be driven by sustained export performance on more favourable global growth prospects.

Headline inflation eased to 3.9 per cent in May, after hitting an eight-year high of 5.1 per cent in March.

The central bank has kept the key rate at 3.0 per cent since July 2016, when it cut the rate for the first time in over seven years.

REUTERS