Malaysia expected to keep interest rates at the current level

The Malaysian central bank is expected to hold interest rates at their current level in order to support its economic growth.

Bloomberg reports that while the country has enjoyed a robust increase in its economy for the first half of the year, the outlook for 2011 remains uncertain "given external developments".

The news is likely to interest individuals with an interest in buying property in Malaysia, with it expected to have a knock-on effect on the real estate market.

Earlier this month, governor Zeti Akhtar Aziz announced that interest rates are at "appropriate levels" to curb inflation, although concerns have been raised that not enough is being done to prevent other asset bubbles forming.

"While Malaysia is not experiencing a general property bubble, targeted pre-emptive measures are appropriate to moderate the increases in property prices that are evident in selected locations that are speculative in nature," Mr Zeti said last week.