Malaysia keeps interest rate steady at 3.0%

    Malaysia's central bank kept its benchmark Overnigh Policy Rate (OPR) unchanged at 3.0 percent, as widely expected, noting the uncertain global economic and financial environment.

    Bank Negara Malaysia said after a meeting of its Monetary Policy Committee that pressures in international financial markets had receded following the recent policy decisions in the euro area, but a number of important issues remain unresolved and continue to unsettle markets.

    "The MPC will continue to carefully assess these evolving conditions and their implications on the overall outlook for inflation and growth of the Malaysian economy," the bank said in a statement.

    Consumption and investment in Malaysia remains resilient and domestic demand will be an anchor of growth while inflation is expected to remain moderate for the rest of this year due to excess capacity in the economy.
    "Global energy and commodity prices are likely to be contained given the weak global conditions.  However, upside risks to inflation could emerge should disruptions to global supply result in higher global prices for these commodities," the bank said.
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