Malaysia’s central bank held its overnight policy rate at 3% for the second consecutive meeting. Policymakers expect both headline and core inflation to moderate for the rest of the year but also acknowledged risks like changes in domestic policy on subsidies and price controls, fluctuations in global commodity prices, and financial market developments. The annual inflation rate dropped to a two-year low of 2% in July from 2.4% in June. Meanwhile, the country’s unemployment rate declined to 3.4% in July from 3.7% in the same month a year earlier.