Malaysia: Central Bank stays put in September
September 6, 2012
At its 6 September 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". The Bank adopted a more hawkish tone stating that global growth momentum has moderated both in advanced and emerging economies and that conditions in international financial markets remain volatile. On the domestic front, the Bank stated that domestic demand has continued to support economic growth, while inflation is expected to remain moderate until the end of the year and into 2013.