Malaysia's Third Quarter GDP Growth Slows to 4.7%

The third quarter GDP released on last Friday showed growth slowing to 4.7% y/y (4.5% forecast) and compared to an upward revised 6.7% y/y in second quarter (previous 6.3%).

The Central Bank sees fourth quarter growth even slower at 3.5-4.5% and full year 2008 at 5.0 to 5.5%.Bank Negara Malaysia (BNM) expects inflation at less than 3% in the second half of 2009.

The Central Bank said it is ready to provide dollar liquidity for trade finance and that it has flexibility on rates but added that current rates are not inhibiting borrowing.