KUALA LUMPUR : Malaysia’s central bank kept its benchmark interest rate unchanged on Thursday as rising COVID-19 vaccination rates fuel hopes for a swift economic rebound.

All 22 economists surveyed in a Reuters poll had expected Bank Negara Malaysia (BNM) to hold its overnight policy rate steady at a record low of 1.75per cent.

While Malaysia’s downgrade to its 2021 growth outlook last month fuelled some market speculation of another rate cut, analysts said rising vaccination rates and continued strong external demand should support the economic recovery.

(Reporting by Rozanna Latiff; Editing by Ana Nicolaci da Costa)