Malaysia: Central Bank stays put amid robust growth
March 7, 2013
At its 7 March 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 amid robust economic growth and modest inflation. The Bank has maintained its policy rate at the current level since May 2011.
Bank Negara Malaysia acknowledged improvements in advanced economies but warned that risks to economic recovery remain. That said, the Bank noted that growth within Asia continues to be supported by firm domestic demand and gradual improvements in regional trade.
On the Malaysian economy, the Bank foresees domestic demand to steam ahead fuelled by robust investment and private consumption. In addition, the external sector is also expected to improve gradually and provide further support to the economy. Regarding prices, the Committee expects inflation to remain contained this year.