Strong growth, controlled inflation push OPR to remain at 2.75%
BANK Negara Malaysia is keeping the OPR parked at 2.75%, pointing to steady economic growth and well-behaved inflation. Central bank chief Datuk Seri Abdul Rasheed Ghaffour told reporters that headline and core inflation have held firm at 1.8% and 2%...
Malaysia's economy continued to thrive in the second quarter, buoyed by robust electrical and electronics shipments, stable domestic consumption, and robust tourism figures. The nation's central bank, Bank Negara Malaysia, has maintained its overnight policy rate (OPR) at 2.75%, citing sustained economic expansion and stable inflation levels.
Central bank governor Datuk Seri Abdul Rasheed Ghaffour told reporters that headline and core inflation remained steadfast at 1.8% and 2% respectively, staying within the central bank's forecast range of 1.5% to 2.5%. Abdul Rasheed expressed confidence that the country's economic growth would continue on an upward trajectory, driven by the booming AI and tech sectors.
He expects this positive momentum to persist through 2028. The central bank remains vigilant, monitoring potential risks such as geopolitical tensions in the Middle East and supply shocks, while local businesses have demonstrated resilience by diversifying their supply chains and managing inventories effectively. Regarding future interest rate adjustments, Abdul Rasheed emphasized that the decision would hinge on the underlying cause of any inflationary pressures.
If the root cause is primarily driven by cost increases, monetary policy alone may not suffice; instead, the central bank would need to employ additional measures to address the situation.
Written by urgent.news from The Vibes's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
