Malaysia’s central bank held its benchmark interest rate steady at 3% in July, following a 25 bps rate increase in May, stating that the monetary policy stance is slightly accommodative and continues to support the economy. Policymakers noted that headline inflation continues to slow while the core rate remains high. Both headline and core inflation are expected to trend lower in the second half of 2023. Meanwhile, growth for the remainder of the year will most likely be driven by resilient domestic demand.