Bank Negara Malaysia (BNM) has chosen to retain the overnight policy rate (OPR) at 3%, even as the ringgit tumbled to a 25-year low against the US dollar. This decision, emerging from the central bank’s two-day monetary policy committee (MPC) meeting, intends to support domestic economic growth amidst the prevailing global high-interest-rate environment.
Malaysia’s OPR holds at 3%
BNM’s statement conveyed that the OPR level supports the economy and aligns with the assessment of inflation and growth prospects. Malaysia’s economic growth is projected to depend on domestic demand as global trade remains sluggish.
Inflation has eased entering Q4 2023, and the growth outlook faces potential risks related to inflation, geopolitical tensions, and financial conditions. X users state that this is a popular decision, but it isn’t the right one. Some speculate that the Ringgit may fall further because of this.