Malaysia: Central Bank stays put in July
July 5, 2012
At its 5 July 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 unchanged since May 2011. Bank Negara Malaysia decided to keep the OPR on hold due to "considerable uncertainties in the global economic and financial environment". That said, "pressures in the international financial markets have receded following the recent policy announcements to address the European crisis". In addition, the Bank stressed that "the global economic recovery has moderated in the recent months". On the domestic front, the Bank stated consumption and investment remain resilient, while inflation is expected to remain moderate until the end of the year.