BNM’s Monetary Policy Committee raised the OPR rate by another 25 basis points to 2.50%, the third consecutive increase this year.
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Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) today raise the overnight policy rate (OPR) by 25 basis points (bps) to 2.50%.
This was decided at the central bank MPC’s fifth meeting today.
In its statement today, BNM said that the ceiling and floor rates of the corridor of the OPR correspondingly increased to 2.75% and 2.25% respectively.
“With the positive growth prospects for the Malaysian economy remaining intact, the MPC decided to further adjust the degree of monetary accommodation.
“At the current OPR level, the stance of monetary policy continues to remain accommodative and supportive of economic growth,” the statement reads.
BNM also added that MPC would continue to assess evolving conditions and their implications on the overall outlook for domestic inflation and growth.
“Any adjustments to the monetary policy settings going forward would be done in a measured and gradual manner, ensuring that monetary policy remains accommodative to support a sustainable economic growth in an environment of price stability.”
This is the third consecutive rate hike by the Malaysian central bank in 2022 having raised the OPR by 25bps in May and July this year
For the record, the OPR – the interest rate for financial institutions that lend each other money overnight – was set at a historic low of 1.75% between September 2020 and May this year.