BNM: Malaysia’s Monetary Policy To Remain Unaggressive Moving Forward
Author Avatar
bank negara malaysia
(Image: BHarian/Sairien Nafis)

Deputy governor of Bank Negara Malaysia (BNM), Datuk Abdul Rasheed Ghaffour has said that the central bank will continue to keep Malaysia’s monetary policy unaggressive in the future, with adjustments to be made when necessary.

“In terms of timeline and the level of extent of [the] adjustments itself, what is important is [that] we will not need to be aggressive. We are not in the same situation as we see in the advanced economies in terms of inflation rate and strength of demand,” said Datuk Abdul Rasheed during a conference.

Datuk Abdul Rasheed also said that BNM will need to regularly monitor Malaysia’s economic growth and inflation to make the appropriate adjustments to Malaysia’s monetary policy, namely the overnight policy rate (OPR). “The terminal rate, I think we should not be fixated on a particular number; what is important is that we need to calibrate the monetary policy that would support sustainable growth moving forward,” he emphasised.

(Image: BHarian/Sairien Nafis)

Datuk Abdul Rasheed further stressed that Malaysia’s OPR hike must be done in a measured and gradual manner to encourage steady economic growth. Any increases introduced will have to consider the timing and magnitude of market adjustment to the increase, he said.

Last month, BNM had raised Malaysia’s OPR by 25 basis points, bringing it up from a historic low of 1.75% to 2.00%. The decision was prompted by latest indicators that showed Malaysia’s economy to be improving, driven by recovering domestic demand and sustained export growth. Economists also foresee further rate hikes throughout 2022 and 2023 given this normalisation of economic activity.

(Sources: The Edge Markets, Malay Mail)

0 0 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of

0 Comments
Inline Feedbacks
View all comments
Top Personal Finance News Articles
Post Image
Petrol Price Malaysia Live Updates (RON95, RON97 & Diesel)
The RinggitPlus Team
- 10th August 2022
We provide weekly updates on every Friday at 5pm on the prices of RON95, RON97 and Diesel in Malaysia and a chart that shows the movement of fuel prices across a 6-week period. Bookmark this page now!
Post Image
Astro 4K Ultra HD Broadcast To Be Available For Subscription By The End of This Year
Brian Chung
- 14th August 2018
By the end of 2018, Astro customers will be able to watch football matches in Ultra HD. Read on to know more about the 4k Ultra HD service.
Post Image
Touch n Go RFID: What Malaysian Road Users Need To Know
Jacie Tan
- 10th August 2018
Everyone’s talking about Touch ’n Go RFID being used at Malaysian highway tolls soon – here’s what you need to know about it.
Post Image
Best High Interest Savings Accounts In Malaysia (May 2022)
Pang Tun Yau
- 31st May 2022
Make your money work for you by depositing them into the best high-interest savings accounts in Malaysia!

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image