KUALA LUMPUR, March 2 Malaysia's central bank
held its key interest rate at 3.00 percent on Thursday as
expected, on optimism that the economy is recovering after a
year of tepid growth.
Nine out of 10 economists polled by Reuters forecast the
central bank would keep its overnight rate
With the key rate at 3.00 percent, "the stance of monetary
policy is accommodative and supportive of economic activity,
Bank Negara Malaysia (BNM) said.
It said the policy committee "will continue to assess the
balance of risks surrounding the outlook for domestic growth and
BNM said that the economy's growth momentum is expected to
sustain through the year, underpinned by private sector activity
and supported by the turnaround in net exports.
Economic growth slumped for more than a year, before the
pace increased in late 2016. Malaysia's full-year 2016 growth
was 4.2 percent.
"With the growth of domestic demand being sustained, the
more positive contribution from the external sector will lead to
a better performance of the Malaysian economy," the bank said.
In July, BNM cut its key rate by 25 basis points, the first
trim in more than seven years.
(Reporting by Joseph Sipalan; Editing by Richard Borsuk)