Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) has announced that the overnight policy rate (OPR) will be maintained at 3.00% in its July meeting.

In its statement, the central bank noted that the current OPR level remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects of the country. As the year progresses, the MPC will ensure that its monetary policy stance remains conducive to sustainable
economic growth amid price stability.

BNM’s statement also reiterated the sustained strength of the economy in Q2 of 2024, driven by resilient domestic expenditure and better export performance. The central bank expects continued growth via exports catalysed by the ongoing global tech upcycle, where Malaysia is well-positioned in the semiconductor supply chain.

Meanwhile, the central bank noted that it expects inflation to trend higher in the second half of the year, driven by the recent rationalisation of diesel subsidies – though it should remain manageable given the various measures to mitigate and minimise the cost impact on businesses. BNM maintains its projection to headline and core inflation to average between 2.0% – 3.5% and 2.0% – 3.0% respectively.

• TAGS:
• Bank Negara Malaysia
• Monetary Policy Committee
• OPR