Bank Negara Malaysia today increased the Overnight Policy Rate (OPR) by 25 basis points to 2.50%.
“With the positive growth prospects for the Malaysian economy remaining intact, the Monetary Policy Committee (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,” it said in a statement.
This is the central bank’s third consecutive rate hike.
BNM said that despite continued easing in global supply chain conditions, inflationary pressures have remained high due to elevated commodity prices and tight labour markets.
“Consequently, central banks are expected to continue adjusting their monetary policy settings, some at a faster pace, to reduce inflationary pressures,” it said.
In May, the central bank raised the OPR to 2% from 1.75%, reportedly the lowest on record, following a 25-bps cut in July 2020. In July, it raised the OPR by another 25 bps to 2.25%.
