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Malaysian c.bank holds rates, flags hot money risks

KUALA LUMPUR, Nov 12 (Reuters) - Malaysia's central bank kept interest rates unchanged on Friday, citing tame inflation and slower growth and warned of the risks arising from large capital flows into the region. As expected, Bank Negara held the key overnight policy rate at 2.75 percent for the second meeting in a row, after hiking three times this year on the back of strong economic growth. "The stance of monetary policy continues to remain accommodative and supportive of economic growth," Bank Negara said in a statement. "While domestic financial conditions remain orderly, greater vigilance will be accorded to the potential risks arising from large and volatile capital flows. (Reporting by Liau Y-Sing; Editing by Saumyadeb Chakrabarty) Keywords: MALAYSIA ECONOMY/RATES (royce.cheah@thomsonreuters.com; +603 2333 8040; Reuters Messaging; royce.cheah.reuters.com@reuters.net; bureau email: areuters@gmail.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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