Bank Negara Maintains OPR at 3% Amid Positive Economic Indicators
Bank Negara Malaysia has decided to keep the Overnight Policy Rate (OPR) unchanged at 3%, following the conclusion of its two-day Monetary Policy Committee (MPC) meeting. This decision aligns with economists’ expectations and maintains the benchmark lending rate at its level since the last increase of 25 basis points in May 2023.
Supportive Monetary Policy Stance
In its statement, Bank Negara emphasized that the current OPR level supports the economy and is consistent with the ongoing assessment of inflation and growth prospects. “At the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects,” the central bank stated.
Sustained Economic Strength
Recent indicators point towards sustained economic strength in the second quarter of 2024, driven by resilient domestic expenditure and improved export performance. Malaysia’s strategic position in the global semiconductor supply chain is expected to benefit from the global tech upcycle, boosting exports alongside continued strength in non-electrical and electronics goods.
Boost from Tourism and Domestic Spending
Tourism is also poised for growth, with expectations of increased arrivals and spending. Additionally, ongoing employment and wage growth, coupled with supportive policy measures, are set to bolster household spending further.
Conclusion
Bank Negara Malaysia’s decision to keep the OPR steady at 3% reflects confidence in the current economic trajectory, driven by robust domestic and export activities. As the global tech cycle continues to uplift Malaysia’s semiconductor industry and domestic factors such as tourism and consumer spending remain strong, the central bank’s supportive monetary stance is poised to sustain economic growth.
