KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
In a statement today, Bank Negara Malaysia (BNM) said the decision to keep its key interest rate unchanged at 3.25% was made at the Monetary Policy Committee meeting today. This is in line with analysts' forecasts and with the economy continuing to be affected by the weak external environment.
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| Bank Negara Malaysia keeps key interest rate at 3.25% |
"At the current level of overnight policy rate (OPR), the stance of monetary policy remains accommodative and supportive of economic activity," it said.
"The committee recognises that there are heightened risks in the global economic and financial environment. These risks are being carefully monitored to assess their implications on macroeconomic stability and the prospects of the Malaysian economy," it added.
"Domestic demand therefore remains the main driver of growth. However, private consumption is expected to moderate as households continue adjusting to the higher cost of living amidst an uncertain economic environment," it noted.
"The prospects are for the economy to expand within the region of 4.5% to 5.5% this year and 4% to 5% in 2016. It is, however, recognised that the downside risks to growth remain high," it said.
BNM expects inflation to remain relatively stable for the rest of 2015, as the impact on overall inflation has been limited by the lower commodity prices and the generally low global inflation despite the weaker ringgit.
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