Malaysia: Central Bank leaves rates unchanged but lifts reserve requirements
March 11, 2011
At its policy meeting on 11 March, the Central Bank decided to leave the Overnight Policy Rate (OPR) unchanged at 2.75% for the eighth consecutive month, but doubled the reserve requirements from 1.0% to 2.0%. The Bank was one of the first in the region to hike rates early last year, but has abstained from further tightening since July 2010, as inflation remained subdued. However, monetary authorities acknowledged ?incipient signs that domestic demand factors could result in possible upward pressure on prices in the latter part of the year? and signalled that the ?degree of monetary accommodation may be reviewed given the sustained growth in the economy?.