KUALA LUMPUR: Bank Negara Malaysia (BNM) kept its key interest rate at 3.25% on Wednesday, as expected, as inflation has been muted and the ringgit currency has fallen much less than most emerging market ones this year.

All 11 economists polled by Reuters had forecast that the central bank would hold its overnight policy rate .

“In the immediate term, the economy faces downside risks stemming from heightened trade tensions, prolonged weakness in the mining and agriculture sectors and some domestic policy uncertainty,” BNM said in a statement.

The central bank last raised its key rate in January, to “normalise” policy. That was the first hike since July 2014, and the first rate change since July 2016, when there was a cut by 25 basis points.