Have A Heart Don T Raise Opr This Year Guan Eng


 


There is no urgency for the central bank to increase the overnight policy rate (OPR) as done last year, said DAP chairperson Lim Guan Eng.
Bank Negara Malaysia (BNM) has been urged to show compassion for the B40, M40, and small businesses by not increasing interest rates for the rest of the year.
Lim said while the party welcomed BNM's decision to maintain its OPR at 2.75 percent yesterday, it further hopes this will continue throughout the year.
"This is welcome news to Malaysia’s economy in the face of an expected slowdown in global growth and moderation of inflationary pressures, both locally and internationally.
"Economic growth in Malaysia will soften from 8.7 percent last year to 4.5 percent this year, whilst inflation is expected to average between 2.8 and 3.8 percent this year compared with 3.3 percent last year.
“Malaysia’s consumer price index (CPI) in January this year rose 3.7 percent from a year earlier, versus a 3.8 percent in December 2022," Lim said in a statement today.
Therefore, it is not a pressing matter for the central bank to increase the OPR as done last year, as it sought to tame inflation amid robust growth, the former finance minister noted.
"In January, BNM surprised many by not increasing the OPR, easing the cost burden of higher interest rates on individual and small and medium-sized enterprises (SME) borrowers.
"With BNM not increasing OPR again this month, DAP hopes that BNM can demonstrate its heart for the B40 and M40 groups, and SMEs by not increasing OPR for the rest of the year," Lim added. - Mkini


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