Malaysia: Central Bank maintains rates in September
September 5, 2013
At its 5 September monetary policy meeting, the Central Bank left the Overnight Policy Rate (OPR) unchanged at 3.00%, a move that was consistent with market expectations. The Bank has maintained its policy rate at the current level since May 2011.
Bank Negara Malaysia stated that, despite a lack of growth momentum in major economies abroad, the Malaysian economy has remained resilient on the back of domestic demand. Robust investment and private consumption are expected to support growth going forward. Regarding price developments, the Central Bank expects inflation to increase in the second half of the year, although it will only reach modest levels given its low starting point.
For 2013, panellists expect the monetary policy rate to end the year at 3.08%. For 2014, the panel expects the policy rate to end the year at 3.29%.
Author: Carl Kelly, Economist