Central Banks

Malaysia Set to Keep Rate Steady With Eye on Ringgit Slide

  • The ringgit is among Asia’s worst performers this year
  • Sputtering growth another reason for BNM to keep rate on hold

Malaysia fifty ringgit banknotes.

Photographer: Samsul Said/Bloomberg
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Malaysia’s central bank is expected to keep its benchmark interest rate at a five-year high on Thursday, maintaining what limited policy support it can afford to shore up a currency that recently hit a 26-year low.

Bank Negara Malaysia will hold the overnight policy rate at 3% at its second meeting of the year, according to all 19 economists in a Bloomberg survey. The central bank last adjusted borrowing costs in May 2023, when it delivered a quarter-point hike.