Holds rate steady; stability expected throughout 2025 amid growth and inflation focus
The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) at 3.00% in its first meeting of the year, as expected by house and all 24 Bloomberg survey respondents.
Policy statement: The MPC reiterated its stance as "supportive of the economy and is consistent with the current assessment of inflation and growth prospects."
Growth: The MPC expects the domestic economy to sustain growth in 2025, following a 2024 performance in line with expectations. Growth will be driven by resilient domestic expenditure, backed by household spending and increased investment activity, which should also boost exports. However, the growth outlook is still susceptible to downside risks from potential slowdown in major trading partners and weaker-than-expected commodity production.
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