Bank Negara to keep rate at 3.25pc

Publish date: Thu, 10 Sep 2015, 03:24 AM

KUALA LUMPUR: Bank Negara Malaysia is expected to keep rate on hold at 3.25 per cent when it announced its policy decision on Friday.

"We expect it to keep the policy rate unchanged at 3.25 per cent, as we do not think it will hike it to support the currency," Standard Chartered Research said in its report today.

The ringgit is now hovering at 4.34 against the US dollar.

July inflation surprised to the upside at 3.3 per cent year-on-year, including Goods and Services Tax implementation in April, while it was only 1.7 per cent in January-July 2015.

The central bank was slightly more dovish than before in its last meeting statement on July 9, acknowledging risks to global growth.

"Sentiment towards global growth has been poor since then. However, given continued growth in Malaysia, we expect BNM to maintain its current policy stance," it said.

Malaysia's economy grew stronger than expected at 4.9 per cent in the second quarter of 2015, driven by domestic demand. - BERNAMA

Discussions
Be the first to like this. Showing 5 of 5 comments

davidkkw79

It is impossible that bank negara not going to increase interest rate. If not, later foreign money runNing out from Malaysia, at that time Malaysia will have nothing to resist of currency depreciated disaster !

2015-09-10 22:43

TengkuFaisal

increase in interest rate would not lift up currency for more than 3 days. as the exodus of funds wont not care about slight interest increase that change their mind.

furthermore, as long as zeti is in office, no changes of interest rate is expected.

2015-09-10 22:45

yeekarwai88

If increase interest rate,it will destroy stock market.
We need look both side.

2015-09-10 22:46

indicators

In fact I personal preferred they reduced the rate so I have more cash pump into equities .

2015-09-10 22:51

yeekarwai88

Then 1 to 4:50 already when reduce interest rate.

2015-09-10 22:56

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