Stands firm on OPR at 3.00%; growth holds, inflation in check
The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) at 3.00% in its second meeting of the year, as expected by us and 21 Bloomberg survey respondents.
Policy statement: The MPC reiterated its stance that policy remains "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, driven by domestic demand. However, it sounded slightly cautious, stating, “Amid global policy uncertainties, exports are expected to expand at a more moderate pace” and added that “growth outlook is subject to downside risks from an economic slowdown in major trading partners following significant uncertainties surrounding trade policies and lowerthan-expected commodity production.”
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