Malaysia's Central Bank Maintains Interest Rate Amid Inflation Concerns

Malaysia's central bank, Bank Negara Malaysia (BNM), has decided to maintain its benchmark interest rate unchanged at 3.00% for the third consecutive meeting. The decision reflects stable inflation and a steady growth outlook, but concerns over weaker-than-expected external demand and declining commodity production remain uncertain for 2024. Meanwhile, Malaysia's former premier Mahathir Mohamad suggests pegging the country's ringgit to the US dollar as a way to alleviate price pressures, but this proposal may face challenges due to the country's interest rate remaining at a record discount compared to the US Federal Reserve. Indonesia's financial sector, on the other hand, is in good condition and can withstand high US interest rates and rising geopolitical risks, according to the regulator.