Malaysia keeps interest rates steady at 3.50%

Malaysia's central bank kept interest rates on hold on Tuesday, as expected, continuing to extend a lifeline of cheap credit to a slowing economy.

Bank Negara left its official rate at 3.50 per cent for the 16th straight meeting but voiced concerns over the outlook for inflation, saying it was looking for signs that slowing global economic growth could ease price pressures.

'After evaluating the evidence on the downside risks to growth and the upside risks to inflation, the bank has decided to maintain the current stance of monetary policy,' Bank Negara said in a statement.