Malaysia to hold rates amid balancing act

The decision to keep interest rates on hold today at 3.25% reflects the difficult balancing act facing the Malaysian central bank (BNM) as it continues to grapple with the problems caused by slowing growth, a weakening currency and high levels of foreign debt. Although we expect rates to remain on hold in the coming months, a further slump in the ringgit could prompt the central bank to hike rates.

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