Broad money grows by 5.2pc in Sept

KUALA LUMPUR: On an annual basis, broad money (M3) grew by 5.2 per cent in September, said Bank Negara Malaysia Friday. "Although credit extended to the private sector by the banking system grew at a more moderate pace, it remained the main driver of M3 expansion," the central bank in a statement.However, the expansion was partially offset by the decline in net foreign assets following net financial outflows during the month. Interbank rates were relatively stable in September with the average base lending rate of commercial banks at 6.79 per cent.

BNM said retail deposits rates were also broadly unchanged over the period.

Net financing to the private sector grew by 8.9 per cent in September, driven by higher growth in outstanding banking system loans, amidst moderation in growth of net issuances of private debt securities.

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Sabah revenue hits RM6.97 billion: Hajiji says GRS State Government may see full term

Kota Kinabalu: The Sabah Government continued its momentum in managing the economy in line with the commitment and spirit of the Sabah Maju Jaya (SMJ) when it posted record high state revenue of RM6.973 billion last year.

"While the annual growth in outstanding household loans continued to moderate, overall loan demand by businesses increased, as reflected in the higher loan applications," said BNM.

Headline inflation was lower at 2.6 per cent in September due to a lapse of the impact of price adjustments to RON95 and diesel made in the corresponding month of September 2013.

Banking system capitalisation remained at strong levels with the Common Equity Tier 1 Capital Ratio, Tier 1 Capital Ratio and Total Capital Ratio at 12.8 per cent, 13.5 per cent and 15.5 per cent, respectively.

In September, the ringgit broadly depreciated against the currencies of Malaysia's major trade partners.

The local unit, together with other regional currencies, generally depreciated during the month with positive economic data releases in the US.

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According to BNM, the consequential increased prospects for monetary policy normalisation by the US Federal Reserve, moderated investor interest in regional financial assets. Between Oct 1-16, the ringgit exhibited a mixed performance against the currencies of Malaysia's major trade partners.

Meanwhile, the international reserves of Bank Negara amounted to RM416.3 billion (equivalent to US&127.1 billion) as at Oct 15, 2014, sufficient to finance 8.6 months of retained imports and are 1.2 times the short-term external debt. –Bernama

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