Malaysian central bank leaves key rate unchanged

The central bank of Malaysia, Bank Negara Malaysia, has left interest rates unchanged at 3.5%. The decision had been widely expected as inflation has eased substantially to 1.4% in June, after averaging 2% in the first six months of this year.

The central bank expects inflation to stay near the lower end of the projected range of 2 to 2.5% in 2007, though upside risks remain.

In an accompanying statement the central bank said that overall growth in the economy remained favourable in the first

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