Malaysian Central Bank Keeps Rates on Hold, Ringgit Drops

The Malaysian ringgit fell today, heading to the biggest weekly drop since August, after the nation’s central bank refrained from changing its monetary policy and kept the benchmark Overnight Policy Rate unchanged.

The Bank Negara Malaysia left its key interest rate at 3.25 percent today. Regarding the outlook for monetary policy in future, the central bank commented:

Further adjustment to the degree of monetary accommodation may be taken depending on how new information will affect the assessment on the balance of risks.

The passiveness of the Malaysian central bank contrasts to the plans of the US Federal Reserve to raise borrowing costs in relatively near future. This sent the ringgit down against the dollar.

USD/MYR advanced from 3.2315 to 3.2380 as of 12:25 GMT today. The currency pair was up 1.1 percent over the week.

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