Malaysia's Central Bank Will Keep Borrowing Rates Unchanged For Now, Says Analyst

KUALA LUMPUR, March 23 (Bernama) -- Bank Negara Malaysia (BNM or Malaysia's Central Bank) is likely to keep its borrowing rates unchanged for now despite the expectance of slightly higher economic growth in 2017, said ForexTime (FXTM) on Thursday. FXTM Vice-President of Corporate Development and Market Research Jameel Ahmad said the central bank was not expected to follow the US Federal Reserve footstep by raising interest rates higher over lingering economic uncertainties. "The economic uncertainties are still mostly led by external factors and lower borrowing rates at 3.0 per cent should play a role in supporting the domestic economy. "Another reason why it is difficult to envisage another cut in borrowing rates is because inflation pressure is building up in Malaysia," Jameel said in a statement Thursday. Bank Negara Malaysia left the overnight policy rate unchanged at 3.0 per cent at the second of its six scheduled meetings this year. The central bank cut the benchmark interest rate by 25 basis points in July 2016. --BERNAMA