Bank Negara Malaysia Keeps Interest Rate at 3%

Malaysia's central bank, Bank Negara Malaysia (BNM), has decided to maintain its benchmark interest rate at 3.00% during its final policy meeting of 2024, consistent with market expectations and reflecting a positive economic growth outlook. The decision comes amid modest inflation, averaging 1.8% year-to-date, suggesting a stable economic environment. Economists predict that the central bank will keep rates unchanged at least until 2026, with the government recently raising its 2024 economic growth forecast to between 4.8% and 5.3%. Despite a slight weakening of the Malaysian ringgit following the announcement, it remains one of Asia's stronger currencies. The bank also cautioned that future inflation could be affected by government policies and global commodity prices. Overall, the outlook for both inflation and growth remains optimistic as the economy shows resilience.