M'sia holds rate, but may hike it early next year as inflation rises

Kuala Lumpur

EXPECT Malaysia's central bank to raise rates early next year as inflation begins to bite. And notwithstanding doomsayers' predictions, don't expect a current account deficit on the country's balance of payments anytime soon.

Despite its acknowledgement that inflation is slowly rising, Bank Negara Malaysia left the overnight policy rate at 3 per cent at its meeting on Thursday. It clearly signalled that governor Zeti Akhtar Aziz was wary of doing anything that could pose a downside risk to growth.