In line with widespread expectations, Bank Negara Malaysia (BNM) decided to keep the overnight policy rate (OPR) unchanged at 2.75% today.
This is the second time the central bank has taken such a step this year after raising rates four times in a row last year.
Here are some details taken from BNM's statement:
The global economy continues to be plagued by high cost pressures and higher interest rates.
Global core inflation remained above historical averages, although headline inflation moderated slightly from the highs of recent months.
Several central banks are expected to continue raising interest rates which may affect global growth prospects.
Malaysia's economy is expected to moderate in 2023 amid a slower global economy.
Growth will remain driven by domestic demand.
The increased risk will be supported by the implementation of projects from the new 2023 Budget.
The downside risk will continue to be influenced by global developments.
The country's main and core inflation is expected to moderate throughout 2023, but may continue to increase due to lingering demand and cost factors.
Overall, BNM said the monetary policy stance remains accommodative and supportive of economic growth.
However, the Monetary Policy Committee (MPC) remains alert to cost factors, including from financial market developments that may affect the inflation outlook.
