The Bank of Malaysia (BNM) kept its key interest rate unchanged at 1.75%, a record low, citing that the country’s economy remains rather unclear. Global economic growth is weaker than expected, coupled with ongoing political conflicts that disrupt supply chains.
BNM expects the domestic economy to continue to recover strongly in 2022, driven by growing global demand and higher private sector spending.
BNM expects the impact of COVID-19, the Omicron strain now developing, to be far less severe than previous waves, even without rigorous containment measures. The expected reopening of international borders would also spur economic recovery.