Malaysia's central bank on Thursday decided to leave its key rate unchanged as the domestic economy is expected to sustain a steady growth.
The Monetary Policy Committee of Bank Negara Malaysia maintained the Overnight Policy Rate at 3.00 percent. The decision came in line with economists' expectations.
The MPC said the current stance of monetary policy is appropriate given the outlook for inflation and growth.
Policymakers observed that the external sector is affected by global developments, while domestic demand has continued to provide support to growth. Investment activity and private consumption have remained firm.
Sustained income growth amid stable labor market underpin private consumption. Investment activity is being led by capital spending in the domestic-oriented sectors.
Although inflation remained low in the first quarter, inflation is set to continue to rise during the year, it said.
Domestic supply and cost factors are expected to contribute to higher prices. Externally, the risk of weather-related supply disruptions remains and could raise global food prices.
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