BNM raises OPR by 25 basis points to 3.00%

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BNM raises OPR by 25 basis points to 3.00%
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The ceiling and floor rates of the corridor of the OPR are correspondingly increased to 3.25 percent and 2.75 percent, respectively. theSun theSundaily economy business Malaysia BNM OPR

: Bank Negara Malaysia’s Monetary Policy Committee has raised the overnight policy rate by another 25 basis points to 3.00% in a surprise move today.

“With this decision, the MPC has withdrawn the monetary stimulus intended to address the Covid-19 crisis in promoting economic recovery. In light of the continued strength of the Malaysian economy, the MPC also recognises the need to ensure that the stance of monetary policy is appropriate to prevent the risk of future financial imbalances. At the current level, the monetary policy stance is slightly accommodative and remains supportive of the economy.

It added that for most central banks, the monetary policy stance is likely to remain tight. The growth outlook remains subject to downside risks, mainly from an escalation of geopolitical tensions, higher-than-anticipated inflation outturns, and a sharp tightening in financial market conditions including from further stress in the banking sector.

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