The Overnight Policy Rate (OPR) has gone up, once again!
Just yesterday (November 3), Bank Negara Malaysia raised the OPR from 2.50% to 2.70% in order to keep inflation in check as the country’s economy continues to grow. At the time of writing, this is the 4th increase Malaysians have seen in OPR since May this year.
According to a monetary policy statement released by Bank Negara, the recent data is pointing to an even stronger economy as it continues to strengthen in the 3rd quarter. This does not only indicate that more people will have jobs and supporting incomes, but it also signifies that ongoing big projects are also able to support many business activities.
In the meantime, as the country’s border has been reopened following the transition into endemicity, more tourists, both domestic and foreign have arrived which also contributed to the current state of the economy. Additionally, Bank Negara also stated that inflation is expected to moderate but stay elevated compared to historical levels.
What about the future?
Bank Negara believes that the economy will continue to grow with inflation expected to stay elevated. Of course, OPR is bound to change again in the future, but its changes is depending on the growth of the economy and the prices.
“Changes in global commodity prices or domestic subsidies could also affect the inflation,” Bank Negara said.
Do you think the OPR will increase again in the near future?
Also read: Annuar Musa: Jihad Against Inflation Special Task Force Has No Power To Stop OPR Hike