KUALA LUMPUR: Bank Negara Malaysia’s Monetary Policy Committee (MPC) decided to maintain the Overnight Policy Rate (OPR) at 3% as the global economy continues to expand moderately.
In a statement on Tuesday, the central bank said labor conditions in the advanced economies remain firm, while domestic demand continues to support growth in Asia.
It said leading indicators, however, point to a softening of the near term global economic outlook, with considerable downside risks remaining primarily from prolonged trade tensions. While the prospects of monetary easing in the major economies have somewhat eased global financial conditions, heightened policy uncertainty could lead to excessive financial market volatility.
According to The Star, the Malaysian economy grew within expectations in the first quarter of the year, supported by both domestic and external factors.
For 2019 as a whole, Bank Negara said average headline inflation is expected to be broadly stable compared to 2018, added that the trajectory of headline inflation would be dependent on global oil prices and policy measures such as the timing of the lifting of the price ceiling on domestic retail fuel prices.- The Star Online