Malaysia holds key rate steady, flags risks from Middle East crisis

Malaysia's central bank, Bank Negara Malaysia, has maintained its benchmark interest rate at 2.75% for the fifth consecutive meeting, citing risks to domestic growth and inflation from the ongoing Middle East conflict. The bank noted that while Malaysia's economy shows growth momentum, uncertainties from the conflict could impact the outlook. Economists expect no rate changes for the rest of the year, although some foresee a potential hike if inflation rises unexpectedly. The government's subsidy costs have significantly increased due to the conflict, which may also influence inflation and monetary policy decisions.