RTTNews - Tuesday, Malaysia's central bank left its key interest rate unchanged at 2% for the fourth straight rate-setting session saying that domestic economic conditions are stabilizing in line with international developments. The decision matched economists' expectations.
Recent financial and economic indicators, including industrial production, financing trends, consumer and business sentiment, and retrenchments, reaffirm the assessment that economic conditions are stabilizing, the Bank Negara Malaysia said in a statement.
The central bank said it expects the domestic economy to improve in the second half of 2009 and into 2010, following a recovery in domestic demand amidst stabilization of the global economy. Moreover, the bank said the negative inflation is expected to be temporary and is projected to turn positive as domestic conditions strengthen.
With improving domestic economic conditions and as price pressures are expected to remain benign going forward, the assessment is that the current monetary policy stance is appropriate and will continue to provide support for economic activity, the central bank said.
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