Malaysia maintains policy rates at 3% despite global uncertainties

by TMR/ pic by TMR FILE

MALAYSIA has maintained its Overnight Policy Rate (OPR) at 3% despite the global economic uncertainties and a slowing local economy.

Bank Negara Malaysia’s Monetary Policy Committee (MPC) which set policy rates, believed the global economy continues to expand although at a more modest pace amid slower growth in most major advanced and emerging economies.

“The recent escalation of trade tensions point to weaker global trade going forward, with increasing signs of spillovers to domestic economic activity in a number of countries,” the central bank said in a statement.

“Monetary policy easing in several major economies has eased global financial conditions, but uncertainty from the prolonged trade disputes and geopolitical developments could lead to excessive financial market volatility,” said the central bank.

The central bank believed the current OPR level remains accommodative and supportive of economic activity.

“The MPC will continue to assess the balance of risks to domestic growth and inflation, to ensure that the monetary policy stance remains conducive to sustainable growth amid price stability,” it said.