BANK Negara Malaysia’s (BNM) monetary policy committee (MPC) has decided to maintain the overnight policy rate (OPR) at 3% at its meeting today.
In a statement, BNM said at the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects.
“The MPC remains vigilant to ongoing developments to inform the assessment of the domestic inflation and growth trajectories. The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability,” it said.
BNM also said that the global economy continues to expand amid resilient labour markets and continued recovery in global trade.
“Global growth is expected to be sustained by positive labour market conditions, moderating inflation and less restrictive monetary policy.
“Global trade recovery is expected to continue, supported by both electrical and electronics (E&E) as well as non-E&E products,” BNM said.
The central bank also said that the Malaysian economy expanded by 5.1% in the first half of 2024, driven by resilient domestic expenditure and higher export activity.
“Going forward, exports are expected to be further lifted by the global tech upcycle given Malaysia’s position in the semiconductor supply chain, as well as continued strength in non-electrical and electronics goods.”
Tourist arrivals and spending are also poised to rise further. Continued employment and wage growth, as well as policy measures, will continue to support household spending, it said.
On the ringgit, BNM said Malaysia’s positive economic prospects, domestic structural reforms, and ongoing initiatives to encourage flows will continue to provide “enduring support” to the currency. – September 5, 2024
