Bank Negara Malaysia Keeps Interest Rates Unchanged for the 9th Consecutive Meeting

Forex - The Bank Negara Malaysia (BNM) maintained the benchmark interest rate at the same level during its ninth meeting since May last year, allowing policymakers to remain firm due to a stable economic environment. According to the statement from BNM, the policy interest rate remained at 3.00%, in line with analysts' expectations. The central bank reiterated that its stance continues to support the economy and is consistent with assessments of inflation and growth. The Southeast Asian country has become one of the region's post-pandemic success stories by managing to curb price pressures while sustaining stable growth. The BNM Policy Committee noted that the performance of the ringgit continues to be primarily driven by external factors. The committee stated, "The narrowing of the interest rate differentials between Malaysia and developed economies is positive for the currency; however, the outcome of the U.S. elections may increase volatility in the short term." The U.S. elections have created some uncertainty regarding the outlook for Asian economies, especially in scenarios where higher trade tensions could impact exporters like Malaysia or shake commodity and currency markets. Barclays economists recently stated in a note that they believe BNM will remain on a stable policy path regardless of the election outcome. The bank has completed its planned interest rate meetings for this year. The first meeting of 2025 will be held on January 22.