Malaysia: Central Bank keeps rates on hold
May 9, 2013
At its 9 May monetary policy meeting, the Central Bank left the Overnight Policy Rate (OPR) unchanged at 3.00%, in a move that was widely expected by the market. The Bank has maintained its policy rate at the current level since May 2011.
Bank Negara Malaysia stressed that global economic growth remains sluggish and that international financial markets remain vulnerable to changes in investors' sentiment. The Bank also added that the global economic recovery is uneven amid prevailing downside risks to growth.
On the domestic economy, the Bank stated that internal demand will continue to support growth, amid stable labour market conditions, capital spending as well as the implementation of infrastructure projects. Regarding price developments, the Central Bank expects inflation to remain low throughout the year.
For 2013, panellists expect the monetary policy rate to end the year at 3.14%. For 2014, the panel expects the policy rate to end the year at 3.38%.