Bank Negara (Bank of Malaysia) keeps overnight policy rate unchanged at 3%

Bank Negara Malaysia maintained the overnight policy rate (OPR) at 3% during its monetary policy committee (MPC) meeting on Thursday.

The central bank said the MPC considered the current monetary policy to be supportive of the economy while inflation remained contained.

“In addition to domestic conditions, the MPC will continue to carefully assess the global economic and financial developments and their implications on the overall outlook for inflation and growth of the Malaysian economy,” it said.

BNM said while domestic headline inflation averaged 1.6% in 2012, it expected it to be higher in 2013 but to remain modest.

It expected selected global food prices and domestic factors to push up cost and contribute to higher prices.

However, based on the expected modest global growth prospects, pressures from global commodity prices were expected to be contained.

On the Malaysian economy, it said the fourth quarter of 2012 recorded robust expansion, gauging by the broad set of indicators.

 The Star Online

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