Low Inflation, Ringgit Measures, and Malaysia Holds Key Rate

Malaysia keeps its benchmark interest rate unchanged amid low inflation and ongoing measures to defend the ringgit. Bank Negara Malaysia left the overnight p.m. rate unchanged on Thursday. Malaysia is saving its policy ammunition for later amid looming risks to inflation and looming inflation risks. The country's central bank has been taking steps to defend its ringgit in recent months.

Malaysia is set to keep its benchmark interest rate unchanged on Thursday. Low inflation and a currency faring better than peers spare policymakers the pressures that prompted a surprise hike in Indonesia last month. Indonesia's surprise hike was prompted by a drop in inflation that led to a hike in interest rates.