Malaysia's Bank Negara leaves key rate unchanged at 3.50 pct

Malaysia's Bank Negara leaves key rate unchanged at 3.50 pct
28/05/2007 18:00:00
KUALA LUMPUR (XFN-ASIA) - Bank Negara said its monetary policy committee has
decided to leave the overnight policy rate (OPR) unchanged at 3.50 pct as the
economy is expected to sustain growth, while inflation will remain within the
expected range over the medium term.
"Given the medium-term outlook for inflation and economic growth, the current
level of the policy rate remains appropriate," Bank Negara said in a statement.
The central bank said despite the less favourable external environment has had
a moderating effect on Malaysia's export growth, strong domestic demand has
sustained growth.
"The public sector has also had an important positive impact on domestic
economic activity," it added.
On the outlook for inflation, the central bank said the expectations are that
the average rate of inflation for 2007 would be within the projected range of
2-2.5 pct.
However, it cautioned that the continued high prices of commodities and
agricultural products, and the rise in global food prices could have
implications for domestic food prices and overall inflation.
"In view of the uncertainty in the external environment, developments in the
international economy would be monitored closely," it said.



Source: Osk WireNews