The National Bank announced that the Overnight Policy Rate (OPR) will remain unchanged, that is, at 1.75%.
Bank Negara held a monetary policy meeting (MPC) on January 19 and January 20. At the end of the meeting, a statement was issued stating that the Bank decided to keep the existing overnight policy rate. This was the first time this year that the OPR rate was announced, and the next MPC meeting will be held in March.
The National Bank pointed out that the global economy is gradually recovering in manufacturing and trading activities, and labor market conditions have also improved. However, inflation remains high in several countries around the world, mainly due to supply and demand.
Our inflation rate from January to November last year was 2.3%. Our economic growth this year will be between 3 and 4%.
The current OPR of the National Bank is 1.75% p.a. This rate has been maintained since July 2020, which is the lowest rate in our history. The low interest rate environment is expected to relieve the economic pressure on the people as their disposable income will increase.