The question was finally answered after Bank Negara Malaysia (BNM) decided to stay with the overnight policy rate at 3.00%.
The decision of BNM's Monetary Policy Committee (MPC) is in line with the expectations of most analysts who also see the central bank to keep it unchanged this year.
The following are the main details taken from BNM's statement.
The global economy continues to be weighed down by persistent core inflation and higher interest rates.
Although China's reopening remains supportive of global growth, the pace of recovery is slow.
Global core inflation remains above historical averages, although core inflation continues to moderate.
For most central banks, the monetary policy stance is likely to remain tight.
The outlook remains dependent on downside risks mainly from geopolitics, inflation and a sudden tightening in financial market conditions.
In Malaysia, the economy grew at a more moderate pace as exports were affected by slower external demand.
Further growth this year will be driven by resilient domestic demand.
Household spending continues to be supported by a favorable labor market.
Domestic financial conditions also remain conducive to financial intermediation amid sustained credit growth.
For the second half of 2023, both headline and core inflation are expected to move lower.
Risks to the inflation outlook remain subject to core inflation, domestic policy changes on subsidies and price controls, as well as global commodity prices and financial market developments.
At current levels, the stance of monetary policy is slightly accommodative and remains supportive of the economy.
However, the MPC will ensure that the stance of monetary policy remains conducive to sustainable economic growth in a stable price environment.
