Today, Bank Negara Malaysia (BNM)’s Monetary Policy Committee decided to increase the Overnight Policy Rate (OPR) from 2.50% to 2.75%.
According to BNM, the increase was decided after the global economy continued to be burdened by rising cost pressures, tighter financial conditions, and strict restrictive measures in China.
What is BNM’s decision?
- BNM increases the OPR from 2.50% to 2.75%
- Therefore, Malaysia’s economy will further develop
- BNM ensures the inflation rate will be under control
What is the latest economic development?
The latest data shows Malaysia’s economy is stabilizing:
- The economy was steady during the third quarter of 2022
- More individuals are getting job offers, thus contributing to the earnings and expanses of a family
- Big-scale projects are ongoing— these projects are to help the business industry
- Tourism activities have been welcomed since the opening of Malaysia’s borders
What is the economic prospect?
BNM assures that the country’s economy will develop and the inflation level will stay elevated
- Any changes in the OPR depend on the stability of the economy and the increase in price
- The current situation is changeable
- If global growth declines, this will affect Malaysia’s economy
- In addition, the change in global commodity prices or domestic subsidies impacts the country’s inflation
Bank Negara certifies that any adjustments to the monetary policy will be measured gradually. It’s to ensure the monetary policy remains accommodative to support economic growth in an environment of price stability in Malaysia.
For more detailed information on the monetary policy and OPR, visit the FAQs section at https://www.bnm.gov.my/-/monetary-policy-statement-03112022