Malaysia's Central Bank Maintains Interest Rate, Flags Inflation Risks

Despite easing inflation, planned subsidy changes could impact the economic outlook in 2024.

Malaysia's central bank, Bank Negara Malaysia (BNM), has held its benchmark interest rate at 3.00% for the fourth consecutive meeting.
Despite the steady rate, BNM has flagged potential inflation risks due to planned changes in subsidies.
Malaysia's economy is expected to grow between 4% and 5% in 2024, supported by recovery in exports and resilient domestic expenditure.
However, the growth outlook is subject to downside risks from weaker-than-expected external demand and larger declines in commodity production.
Inflation in Malaysia has eased in recent months, but the government's intention to review price controls and fuel subsidies this year could affect the inflation outlook.