Central Banks
Malaysia Set to Keep Key Rate Steady as Growth, Price Risks Rise
- All economists in survey see overnight policy rate kept at 3%
- Global volatility, subsidy reforms threaten Malaysia outlook
Malaysian ringgit banknotes.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Malaysia will likely keep borrowing costs unchanged for a fourth straight meeting amid risks of inflation flaring as the government caps subsidies and boosts taxes while slower economic growth poses an additional challenge.
Bank Negara Malaysia will maintain the overnight policy rate at 3% on Wednesday, according to all 21 analysts in a Bloomberg News survey. That would keep the key rate at a record discount to the upper bound of the Federal Reserve’s rate, adding pressure on the local currency.