BANK Negara Malaysia has maintained the overnight policy rate (OPR) at three per cent following the conclusion of its Monetary Policy Committee (MPC) meeting today.
At the current OPR level, BNM said the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects.
“The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability,” it said in a statement.
It also said that global growth is expected to be sustained by positive labour market conditions, moderating inflation and less restrictive monetary policy.
"For the Malaysian economy, the latest indicators suggest sustained strength in economic activity, driven by resilient domestic expenditure and increased export activity," it said, adding that, going forward, exports are expected to benefit from the global tech upcycle, continued strength in non-E&E goods, and higher tourist spending.
It said the 2025 Budget measures will provide additional support to growth, with the growth outlook being subjected to downside risks from lower-than-expected external demand and commodity production.
“Looking ahead, the narrowing interest rate differentials between Malaysia and the advanced economies is positive for the ringgit. Malaysia’s favourable economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to provide enduring support to the ringgit,” added the central bank. - November 6, 2024
