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Banknotes from several currencies laid side by side.
Author
Aisyah Rahman
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1 Minutes
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Bank Negara holds at 3.00 percent and points at the ringgit without naming it

The rate decision was unanimous and expected. The statement language on external conditions was the part that moved the currency.

Bank Negara Malaysia kept the overnight policy rate at 3.00 percent, the ninth consecutive hold. The decision matched every forecast in the market.

The statement did the talking. A new reference to monitoring "external financial conditions and their transmission to domestic markets" replaced softer language from the previous meeting, and traders read it as what it appears to be: the central bank noting the currency without committing to defend a level.

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About the author

Aisyah Rahman

Southeast Asia correspondent, Kuala Lumpur

Aisyah covers Bursa Malaysia, the ringgit and Malaysian corporate earnings from Kuala Lumpur. She has reported on Southeast Asian markets for nine years and holds an economics degree from Universiti Malaya.

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