Bank Negara Malaysia decided to keep its overnight call rate at 3.5% on Friday.
The central bank forecast remains positive, adding to speculation that the overnight rate will stay at 3.5% for the rest of 2007.
"While rising global food and commodity prices could potentially increase the risk of higher prices, the inflation rate in Malaysia is expected to remain low," the central bank said. "Inflationary expectations are also well-contained."
Recent market instability could affect Malaysia, bu