KUALA LUMPUR, Jan 19 (Reuters) – Malaysia’s central bank on Thursday unexpectedly kept its benchmark interest rate (MYINTR=ECI) unchanged, signalling worries about economic growth after four consecutive rate hikes last year.
Bank Negara Malaysia held the overnight policy rate at 2.75%. All but one of 27 economists polled by Reuters had expected the bank to raise the rate to 3%.
“Today’s decision allows the monetary policy committee to assess the impact of the cumulative past overnight policy rate (OPR) adjustments, given the lag effects of monetary policy on the economy,” Bank Negara Malaysia said in a statement.
Future monetary policy moves would depend on both domestic inflation and the growth outlook, it said.
The central bank flagged downside risks to the economy, including geopolitical tensions, weaker growth in advanced economies and a sharp tightening in financial market conditions. Headline inflation has peaked, it said.
The…
