Bank Negara maintains OPR at 2.75pc, says policy stance supportive of economy

KUALA LUMPUR, March 5 — Bank Negara Malaysia’s Monetary Policy Committee (MPC) has decided to maintain the Overnight Policy Rate (OPR) at 2.75 percent, with the policy rate remaining conducive to supporting sustainable economic growth amid moderating inflation. In a statement today, the central bank said the global economy is projected to grow at a slower pace in 2023 compared to 2022, reflecting the impact of tighter monetary policy in major economies, geopolitical tensions, and elevated inflation. However, it noted that growth in Malaysia’s key trading partners is expected to remain resilient, supported by domestic demand. The MPC noted that the Malaysian economy is expected to be supported by continued domestic demand, particularly from private consumption, and a recovery in tourism. The central bank expects inflation to moderate in 2023, with headline inflation and core inflation projected to decline from their 2022 levels. The MPC will continue to monitor the economic and financial developments and will adjust its monetary policy as necessary to ensure sustainable economic growth and price stability.