Malaysia’s central bank holds policy rate at 3.25%

KUALA LUMPUR - Bank Negara Malaysia (BNM) has maintained its overnight policy rate (OPR) at 3.25%. The policy statement reiterates a positive outlook on global growth and trade.

It further maintained that headline inflation in 2018 will be more moderate than in 2017, although its trajectory will be dependent on global oil prices.

ANZ Bank says its base case is for BNM to raise its policy rate by 25bps in September owing to domestic demand holding up well. “However, the process of policy rate normalisation can be delayed until after the 2019 budget is announced,” it says.  www.live.anz.com (ATI).