Malaysia Monetary Policy


Central Bank keeps interest rate on hold

At its 11 May monetary policy meeting, the Central Bank left the Overnight Policy Rate (OPR) unchanged at 3.00% for the 12th straight month, in a move that was widely expected by the market. Bank Negara Malaysia decided to keep the OPR on hold due to renewed stress in international financial markets as well as the uncertain outlook in Europe. Moreover, economic activity in Asia continues to be affected by the slowdown in global trade. On the domestic front, the Bank stated the Malaysian economy has been supported by robust growth in consumption and investment. Going forward, the Bank assured that this trend will continue, while inflation is expected to ease.

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