Meets Expectations, BNM Maintains OPR At 3.00%!

<p>&nbsp;The question was finally answered after Bank Negara Malaysia (BNM) decided to stay with the overnight policy rate at 3.00%.</p><p><br /></p><p>The decision of BNM's Monetary Policy Committee (MPC) is in line with the expectations of most analysts who also see the central bank to keep it unchanged this year.</p><p><br /></p><p>The following are the main details taken from BNM's statement.</p><p><br /></p><p><br /></p><p>The global economy continues to be weighed down by persistent core inflation and higher interest rates.</p><p>Although China's reopening remains supportive of global growth, the pace of recovery is slow.</p><p>Global core inflation remains above historical averages, although core inflation continues to moderate.</p><p>For most central banks, the monetary policy stance is likely to remain tight.</p><p>The outlook remains dependent on downside risks mainly from geopolitics, inflation and a sudden tightening in financial market conditions.</p><p>In Malaysia, the economy grew at a more moderate pace as exports were affected by slower external demand.</p><p>Further growth this year will be driven by resilient domestic demand.</p><p>Household spending continues to be supported by a favorable labor market.</p><p>Domestic financial conditions also remain conducive to financial intermediation amid sustained credit growth.</p><p>For the second half of 2023, both headline and core inflation are expected to move lower.</p><p>Risks to the inflation outlook remain subject to core inflation, domestic policy changes on subsidies and price controls, as well as global commodity prices and financial market developments.</p><p>At current levels, the stance of monetary policy is slightly accommodative and remains supportive of the economy.</p><p><br /></p><p>However, the MPC will ensure that the stance of monetary policy remains conducive to sustainable economic growth in a stable price environment.</p>