At its 7 July monetary policy meeting, the Central Bank maintained the overnight policy rate (OPR) unchanged at 3.00%, in a decision that surprised most market analysts, who had seen a 25 basis-point hike as inflation had climbed to a two-year high in May. Nevertheless, the Central Bank cited an evident moderation in growth, mainly due to heightened uncertainties arising from the sluggish global economic recovery and lower-than-expected public sector investment, as the main reason behind its decision. In a related move, the Central Bank lifted the statutory reserve requirement ratio from 3.00% to 4.00%, the third increase so far this year. The decision was undertaken as a pre-emptive measure to manage the significant build-up of liquidity, which may result in financial imbalances and create risks to financial stability. The Central Bank will hold its next monetary policy meeting on 8 September.
Malaysia Monetary Policy
Central Bank leaves rates unchanged but raises reserve requirements
July 7, 2011
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Malaysia Economic News
October 12, 2016
Industrial production increased 4.9% in August from the same month last year.
October 7, 2016
Exports in USD terms rose 3.3% annually in August, which was a sharp improvement over July’s 8.9% contraction (previously reported: -8.7% year-on-year).
September 23, 2016
In August, consumer prices rose 0.43% over the previous month, which was slightly up from the 0.26% increase registered in July, according to the Department of Statistics Malaysia.
September 16, 2016
The ringgit has had a tumultuous week as a combination of factors, both domestic and external, have impacted the currency.
September 10, 2016
Industrial production increased 4.1% in July over the same month last year.