“Downside risks continue to stem mainly from global developments, including from weaker-than-expected growth outturns or much tighter and more volatile global financial conditions,” the central bank said in a statement.
Malaysia’s economy will remain driven by domestic demand, improvements in employment, infrastructure projects, and an uptick in tourist arrivals, BNM said.
Last year, BNM increased rates by a total of 100 basis points from a historic low of 1.75% as it sought to tame inflation amid robust growth.
Inflation is expected to average between 2.8%-3.8% in 2023, compared with 3.3% last year.
Inflation has been slowly moderating since hitting 4.7% last August. The consumer price index rose 3.7% from a year earlier in January, versus a 3.8% pace in December.
BNM said its monetary policy committee remained “vigilant to cost factors, including those arising from financial market developments, that could affect the inflation outlook.”
