Bnm S Opr Decisions Are Measured Not Preemptive Minister

---

Finance Minister II Amir Hamzah Azizan said Bank Negara Malaysia (BNM) takes a measured approach in managing the overnight policy rate (OPR), describing it as a powerful policy instrument that should be used only when circumstances warrant it.
Speaking at the Asean Leadership Forum in Washington, DC, on Friday, he noted that following the historically low OPR of 1.75 percent during the Covid-19 pandemic, Malaysia’s central bank has adopted a measured and gradual approach to rate hikes compared to other nations that responded with aggressive increases to deal with inflation.
“BNM also raised rates, but it raised in measured form along the way, and it hit a fairly accommodative rate of three percent which was comfortable for businesses to be still able to do business, but signalled the right message along the way,” he said.
Amir was asked about BNM’s decision to keep the rate at three percent and Malaysia’s contingency frameworks in case of more uncertainties and market volatility in the future.
He noted that headline inflation, which hit 1.8 percent last year, has eased to 1.4 percent in March this year, indicating that inflation is under control.
ADS“The (OPR) rate is at three percent now. There’s no pressure for the government at this point in time on that,” Amir said during a question-and-answer session at the forum organised by the Centre For Strategic and International Studies (CSIS).
“Now, if things get difficult, is the tool available to be looked at? It’s available to be looked at, but we don’t take that preemptive decision today,” the minister added.
BNM’s third Monetary Policy Committee meeting is scheduled for May 8, 2025, where a decision will be made on the OPR.
- Bernama

---