KUALA LUMPUR, July 7 – Bank Negara Malaysia (BNM), central bank of Malaysia decided to held interest rates steady at 3 per cent today, surprising financial markets which had been betting on a hike, as the authorities brace for growth to slow due to weaker global demand.

BNM raised the Statutory Reserve Requirement ratio to 4 per cent from 3 per cent effective July 16.

The latest indicators point to a moderation in growth in the second quarter, the central bank said in a statement after the Monetary Policy Committee (MPC) meeting today

“Going forward, global growth will remain highly uneven across regions, with increased downside risks,” the statement stated.

Eleven of 15 economists in a Reuters poll expected BNM to raise the overnight policy rate (OPR) by 25 basis points, while seven out of 11 economists had forecast a 100 basis point increase in the bank reserves requirement.
 

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