KUALA LUMPUR, May 5 — Bank Negara Malaysia (BNM) is expected to keep its benchmark rate unchanged at 3.25 per cent at a review on Thursday, as policymakers see limited downside risk to the economy, a Reuters poll showed.
All economists were unanimous that the central bank will not change its overnight policy rate as lower oil prices offset the effects of a consumption tax that came into effect on April 1.
Pressure on the ringgit, emerging Asia’s second worst performing so far this year, has also eased.
Malaysia last revised its key interest rate in July 2014, when it raised the rate from 3.00 to 3.25 per cent. Economists had initially pencilled in another 25-basis-point increase before the global oil price slump. Malaysia is a net oil-exporting nation.
Economists were mixed about the central bank’s next move with 7 out of 10 economists with longer-term views expecting no change this year, while two expected a quarter-point cut and one predicted a hike of 25 basis points. — Reuters
