Bank Negara announces that the Overnight Policy Rate (OPR) will remain unchanged, that is, at 1.75%.
Bank Negara held a monetary policy meeting (MPC) on Nov. 2 and Nov. 3. At the end of the meeting, a message was issued stating that the Bank decided to keep the existing overnight policy rate. This is the last time the OPR rate will be announced this year, and the next MPC meeting will be held in January 2022.
The National Bank noted that the global economy is gradually recovering amid expansion in the manufacturing and service sectors. But inflation has also risen amid continued strong global demand, supply chain disruptions, higher commodity prices and labor shortages.
Malaysia’s economic activity weakened in the third quarter and Bank Negara believes that the aid package introduced by the government and the opening of the economy will keep our economic growth supported, hence the OPR continues to remain at 1.75%. The country’s inflation rate is expected to be between 2 and 3% this year, compared to 2.3% as of now. Potential inflation, as measured by core inflation, is then expected to be below 1%.
The National Bank’s OPR is currently at 1.75% p.a., a rate that has been maintained since last July and is the lowest rate in our history. The low interest rate environment is expected to soothe the economic pressure on the people as their disposable income will increase.
The National Bank will hold six monetary policy meetings in 2022, namely on January 19 and 20, March 2 and 3, May 10 and 11, July 5 and 6, September 7 and 8, and November 2 and 3.
