At its meeting today, the Monetary Policy Committee (MPC) of Bank Negara Malaysia has decided to maintain the Overnight Policy Rate (OPR) at 3% amid global economic challenges.

The committee noted that despite the expansion of the global economy driven by resilient domestic demand and strong labour market conditions, global growth is being hindered by persistent core inflation and higher interest rates.

“While China’s reopening remains supportive of the global economy, its pace of recovery has slowed in recent months. Globally, headline inflation continued to moderate, but core inflation remains above historical averages.

“For most central banks, the monetary policy stance is likely to remain tight. The growth outlook remains subject to downside risks, mainly from a slower momentum in major economies, higher-than-anticipated inflation outturns, an escalation of geopolitical tensions, and a sharp tightening in financial market conditions,” it said in a statement.

The central bank said that at the current OPR level, the monetary policy stance is slightly accommodative and remains supportive of the economy.

“The MPC continues to see limited risks of future financial imbalances. The MPC remains vigilant to ongoing developments, and will continue to monitor incoming data to inform the assessment on the outlook of domestic inflation and growth. The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability,” it added.

Source: TheSunDaily.my