Malaysia central bank keeps policy rate on hold, sees growth moderating

[KUALA LUMPUR] Malaysia's central bank held its overnight policy rate at 3.25 per cent on Thursday, keeping policy steady while the Southeast Asian country and its markets were rocked by corruption allegations against Prime Minister Najib Razak. "For Malaysia, the latest indicators point to continued expansion of the economy in the second quarter, albeit at a more moderate pace," Bank Negara Malaysia's (BNM) monetary policy committee said in a statement.

The central bank's decision was as expected by a Reuters poll of economists. Inflation remains benign and a recovery in export growth depends on overseas markets. A more pressing worry for the central bank, analysts say, is renewed pressure on the ringgit currency as a political storm rages around Mr Najib.

REUTERS