A veteran banker who led a Malaysian lender to record profit said the Southeast Asian country can hold off on further cutting borrowing costs as current levels are sufficient to support growth.

Economists have cautioned that Malaysia’s stronger-than-expected industrial output in July may not be sustained, as front-loading of shipments ahead of fresh US tariffs and persistent global uncertainties are likely to temper momentum in the coming months.

US consumer prices rose more than expected in August and the annual increase in inflation was the largest in seven months, but the data is not expected to prevent a much-anticipated interest rate cut from the Federal Reserve next week against the backdrop of labour market weakness.

The European Central Bank left interest rates unchanged on Thursday as expected and maintained an upbeat view on growth and inflation, dampening expectations for any further cut in borrowing costs.

Oil prices edged lower on Friday, after big falls in the last session over concerns about possible softening of US demand and broad oversupply that offset worry about supply disruption from conflict in the Middle East and war in Ukraine.