Bank Negara Malaysia (BNM) has just released its latest Monetary Policy Statement today in which the central bank announced that the Overnight Policy Rate (OPR) will be maintained at 3.00%
The decision was made during BNM’s Monetary Policy Committee (MPC) meeting today, with the central bank assuring that the current OPR level will remain supportive of the economy and is consistent with the current assessment of the inflation and growth prospects.
The MPC also stressed that it remains vigilant to ongoing developments to inform the assessment of the outlook of domestic inflation and growth. It added that it will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability.
Besides that, BNM also commented on the recent Malaysian Ringgit (MYR) movements which have been less than favourable, saying that they were primarily driven by external factors and not reflective of the current domestic economic performances and prospects.
The statement asserted,
“As the risk of heightened volatility in the global financial and foreign exchange markets remains, BNM will continue to ensure sufficient liquidity to support the orderly functioning of the domestic foreign exchange market.”
“Financial institutions continue to operate with strong capital and liquidity buffers, with domestic financial conditions remaining conducive to sustain credit growth.”
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For 2024, BNM expects inflation to remain modest, thus reflecting stable cost and demand conditions. Moreover, the central bank said that risks to the inflation outlook remain highly subject to changes to domestic policy on subsidies and price controls, as well as global commodity prices and financial market developments.
BNM also pointed out the Federal Government’s intention to review price controls and subsidies in 2024 as something that will affect the outlook for inflation and demand conditions.
So, what do you guys think of BNM maintaining the OPR rate at 3.00%? Share your thoughts with us in the comments.
Also read: Malaysian Ringgit Falls to Lowest-Ever Level Against Singapore Dollar, SGD1 Now Worth Over RM3.53
