[UPDATED] BNM maintains OPR at 2.75%

KUALA LUMPUR – Bank Negara Malaysia has maintained its overnight policy rate (OPR) at 2.75%.

The central bank in a statement said maintaining the rate will enable its monetary policy committee to assess the cumulative effect of recent OPR hikes on the economy.

“At the present rate, the monetary policy is accommodative and supportive of economic growth,” it said, adding that policy will continue to be fine-tuned according to changes in view of inflation and domestic growth.

The last OPR hike was in November, by 25 basis points to 2.75%.

Previous hikes of 25 basis points each had also been made in May, July and September.

Prior to that, the OPR had remained at 1.75% for two years since July 2020, due to the Covid-19 pandemic and its impact on the economy.

Bank Negara also projected last year’s growth rate to be between 6.5% and 7%, with its last quarter’s expansion driven by domestic demand.

“Growth in 2023 is expected to moderate in line with slower global economic growth and will continue to be driven by domestic demand.

It also projected that job opportunities and incomes will see growth, which will support household spending.

It attributed this to an expected uptick in tourism and the resumption of various infrastructure projects that will support investments.

Overall inflation, which averaged 3.4% from January to November last year, is expected to moderate but still remain high next year due to protracted demand and costs. – The Vibes, January 19, 2023