KUALA LUMPUR: Malaysia lowered its economic growth forecast for 2019 and pledged to keep monetary policy accommodative as global risks weigh on the trade-reliant economy.
The downgrade in the growth outlook was mainly due to worsening global conditions, governor Shamsiah Yunus told reporters. “The bank strives to identify and manage risks before they become destabilising, while building policy space and buffers preemptively.”Bank Negara joins a growing list of central banks that are acknowledging the increasing risks to growth as moderating exports and weakening consumption spur bets for monetary easing across the globe.
A flexible exchange rate also acts as a shock absorber, increasing the economy’s resilience when faced with external shocks, it said. “This is different from a severe drop in spending such that firms generally have to cut prices to attract consumers.”Economy will be supported by private-sector activity, stable income growth and capacity expansion by businesses. Risks include Federal Reserve policy, volatility in global oil prices, commodity supply disruptions, and an oversupply in domestic property market
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: msianinsight - 🏆 8. / 63 Read more »