Bank Negara hikes OPR by 25bps to 2.75% on positive economic growth prospects

Bank Negara hikes OPR by 25bps to 2.75% on positive economic growth prospects

Photo by Zahid Izzani Mohd Said/The Edge

Photo by Zahid Izzani Mohd Said/The Edge

KUALA LUMPUR (Nov 3): Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) has raised the overnight policy rate (OPR) by 25 basis points (bps) to 2.75% on Thursday (Nov 3).

The committee’s final interest rate hike of 2022 was in line with Bloomberg median economist expectations and marked the fourth consecutive 25bps hike of this year, translating to a year-to-date increase of 100bps.

This brought the ceiling and floor rates of the OPR’s corridor to 3% and 2.5% respectively, according to the central bank’s statement.

“Against the backdrop of continued positive growth prospects for the Malaysian economy, the MPC decided to further adjust the degree of monetary accommodation.

“The adjustment would also pre-emptively manage the risk of excessive demand on price pressures consistent with the recalibration of monetary policy settings that balances the risks to domestic inflation and sustainable growth,” BNM said.

BNM noted that with the latest OPR level, its stance on monetary policy remains accommodative and supportive of economic growth.

The central bank reminded that the MPC is not situated on any pre-set course, adding that monetary policy moves will continue to depend on the evolving conditions and implications on the overall outlook to domestic inflation and growth.

“Any adjustments to the monetary policy settings going forward would continue to be done in a measured and gradual manner, ensuring that monetary policy remains accommodative to support sustainable economic growth in an environment of price stability,” BNM added.

More to come

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