Bank Negara raises OPR by 25bps to 2.5%, as expected

KUALA LUMPUR (Sept 8): Bank Negara Malaysia (BNM)’s Monetary Policy Committee (MPC) has raised its overnight policy rate (OPR) by 25 basis points (bps) to 2.5% on Thursday (Sept 8), in line with expectations for further normalisation of monetary policy as the country’s economic growth and inflation gain momentum. At the current OPR level, the stance of monetary policy continues to remain accommodative and supportive of economic growth,” it said. Nevertheless, the central bank said external demand is expected to moderate following softening global growth. Further, the increased volatility expected in the global financial and foreign exchange markets is not expected to derail Malaysia's growth, it said. “Global growth is expected to face challenges from the impact of monetary policy tightening in most economies, and pandemic management measures in China.