BNM Maintains OPR at 3.0%

<p>&nbsp;Bank Negara Malaysia (BNM) has just set the Overnight Policy Rate (OPR) at 3.0% during the Monetary Policy Committee (MPC) meeting today.</p><p><br /></p><p>This is the fourth time the MPC has kept the OPR at 3.0% since July 2023. It was previously raised by 25 basis points in May last year.</p><p><br /></p><p>Based on BNM's statement, the latest OPR value results are because the monetary policy stance remains supportive of the economy and is consistent in the current assessment of inflation and growth prospects.</p><p><br /></p><p>However, the MPC remains cautious with ongoing developments to inform its assessment of the current outlook for inflation and domestic growth.</p><p><br /></p><p>He explained further that monetary policy at the global level is likely to remain tight in the near term and most central banks have reached the peak of the tightening cycle.</p><p><br /></p><p><br /></p><p>For Malaysia, economic growth is expected to improve in 2024 supported by a recovery in exports and resilient domestic spending.</p><p><br /></p><p>Additionally, rising employment data and wage growth remained supportive of household spending. Domestic tourist activities are also expected to improve.</p><p><br /></p><p>At the same time, downside risks due to weaker-than-expected external demand and major declines in commodities continue to be a concern. It is caused by high spillovers from the movement cycle of the technology sector as well as tourism activities.</p><p><br /></p><p>Inflation in the country is seen to moderate in early 2024 after averaging 2.5% in 2023. BNM said the outlook is subject to changes in domestic policies on subsidies and price controls for goods and global commodity prices.</p><p><br /></p><p>The government's move to review price controls and subsidies in 2024 will affect inflation rates and demand conditions.</p>