Malaysia's Central Bank Retains Key Interest Rate

Sponsored Links

Wednesday, Malaysia's central bank left its key interest rate unchanged at 2% for the fifth rate-setting session. The decision was in line with economists' expectations.

The central bank said in a statement that stronger evidence has emerged in the domestic economy to suggest that conditions are improving and a recovery in economic activity is gaining some strength. It said labor market conditions, consumer and business sentiments, industrial production, financing activity and external trade improved since August. These positive developments are expected to continue into 2010, with growth in the domestic economy expected to continue to be supported by existing policy measures and the growing confidence in the private sector.

Consumer prices declined at a slower rate in September, by 2% year-on-year compared to a 2.4% fall in August. The central bank said the decline in consumer prices is expected to be temporary. Excluding further unanticipated price adjustments and external influences, inflation in 2010 is projected to be positive but remain subdued.

"With improving domestic economic conditions, and as price pressures and inflationary expectations are expected to remain contained going forward, the assessment is that the current monetary policy stance is appropriate and will continue to provide support to economic activity," the central bank said.

Wednesday, Malaysia's central bank left its key interest rate unchanged at 2% for the fifth rate-setting session. The decision was in line with economists' expectations. (Market News Provided by RTTNews)