KUALA LUMPUR, May 16 — No decision has been made yet regarding the overnight policy rate (OPR) cuts, but Bank Negara Malaysia (BNM) will ensure that its monetary policy stance remains conducive to sustainable economic growth amid price stability, said BNM governor Datuk Seri Abdul Rasheed Ghaffour.
He noted that the decision to maintain the OPR at 3.0 per cent during the May Monetary Policy Committee (MPC) meeting is aligned with the central bank’s current assessment of domestic inflation and growth prospects.
“We recognise the downside risks to our economic growth. Given the highly fluid and uncertain environment, data continues to play a critical role.
“We will continue to monitor key indicators to gain a clearer picture and this will be the guiding principle for us at the next MPC meeting,” Abdul Rasheed said during a press conference after announcing the first quarter 2025 (1Q 2025) gross domestic product (GDP) performance today.
He said that fresh data becomes available at every MPC meeting, which could help BNM assess the outlook for inflation and economic growth over the next couple of months.
“The data will help us in terms of making decisions whether to move or not to move in terms of our market-based position,” Abdul Rasheed said.
BNM acknowledges that changes in global trade policies and the uncertain global environment will weigh on Malaysia’s economic outlook.
However, the extent of impact, including on the external sector, is subject to the outcome of trade negotiations that are taking place globally.
“We are facing these external challenges from a position of strength, and our resilient domestic demand would continue to anchor economic activity. Inflation will also remain manageable,” he said.
— Bernama
