Bank Negara Malaysia (BNM) Keep Overnight Policy (OPR) unchanged at 3%

Bank Negara Malaysia (BNM) has maintained the overnight policy rate (OPR) at 3% but cautioned that international financial developments could affect the overall growth prospects of the local economy.

In the latest Monetary Policy Statement released yesterday, the central bank’s Monetary Policy Committee (MPC) made an assessment that the global economic outlook was expected to be weaker and international financial market conditions would remain highly uncertain and volatile, going forward.

“While the domestic economy is expected to expand, these external developments could affect the overall growth prospects of the Malaysian economy,” Bank Negara said, adding that it would monitor the developments and assess the risks to domestic growth and inflation.

The central bank said inflation was projected to remain stable for the rest of this year and moderate in 2012. It expects global energy prices to undergo some moderation and the impact of domestic demand on inflation to remain contained.

What continues to concern the central bank is the high food prices, mainly attributable to supply disruptions that would affect Malaysia’s economic growth and inflation..

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