The Monetary Policy Committee (MPC) of Bank Negara Malaysia recently held another meeting and have decided to maintain the Overnight Policy Rate (OPR) at 3.00 percent.
A statement released by BNM revealed that the global economy continues to expand, driven by resilient domestic demand supported by strong labour market conditions. However, it was also mentioned that global growth continues to be weighed down by persistently elevated core inflation and higher interest rates.
Other highlights include:
- In the second quarter of the year, growth of the Malaysian economy was affected by slower external demand and a decline in commodity production.
- Tourist arrivals and spending are expected to improve further.
- Investment activity would be supported by continued progress of multi-year infrastructure projects, and implementation of catalytic initiatives under the recently announced national master plans.
- Domestic financial conditions also remain conducive to financial intermediation amid sustained credit growth.
Here’s a snapshot of the OPR decisions since January 2019:
BNM also states that at the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of the inflation and growth prospects.
The MPC is committed to observing ongoing developments to inform the assessment on the outlook of domestic inflation and growth.
Read More: How Will The OPR Increase Affect You?