Malaysia: Central Bank stays pat in July
July 11, 2013
At its 11 July monetary policy meeting, the Central Bank left the Overnight Policy Rate (OPR) unchanged at 3.00%, a move that was widely expected by the market. The Bank has maintained its policy rate at the current level since May 2011.
Bank Negara Malaysia stressed that global economic growth remains weak, especially in the advanced economies, and that international financial markets remain volatile.
In the domestic economy, the Bank stated that internal demand will continue to support growth amid stable labour market conditions, capital spending and the implementation of infrastructure projects. Regarding price developments, the Central Bank expects inflation to rise in the second half of the year while remaining modest.
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%.