The Bank of Malaysia (BNM) has decided to maintain its policy interest rate at 2.75%, unchanged from its previous meeting, due to concerns about a possible global economic slowdown. The decision was announced on March 9, after the bank’s latest meeting.
Economists had expected the bank to hold its policy rate unchanged, as a Reuters poll indicated. However, many economists anticipate that BNM will raise interest rates to at least 3.0% in the second half of this year.
BNM’s decision comes after it had kept interest rates steady during its January meeting, citing concerns about economic growth after raising interest rates four times last year.
The bank expects the Malaysian economy to slow down in 2023 due to the decline in global demand.
The bank’s decision to maintain the current policy interest rate is aimed at supporting economic growth amid uncertainty and risks in the global economy. BNM also stated that it would continue to monitor and assess the country’s economic conditions to ensure sustained economic growth.
The bank’s decision to hold the policy rate unchanged is expected to provide some relief to the country’s businesses and households, as it would help to maintain the cost of borrowing at a relatively low level. However, some analysts warn that the country’s economy may face challenges in the coming months, as the global economic outlook remains uncertain.