Malaysia: Overnight policy rate stays at 3%, economic growth to pick up – 13 Jul 2017

  • Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) has decided to maintain the Overnight Policy Rate (OPR) at 3% as the current stance of the monetary policy is accommodative and supportive of economic activity.
  • It also said the Malaysian economy performed better than expected in 1Q17. Growth was lifted by stronger domestic demand with additional impetus from exports.
  • BNM said headline inflation moderated to 3.9% in May, due mainly to the decline in domestic fuel prices during the month.
  • On the external front, BNM said the global economy continues to strengthen with growth becoming more synchronised across countries.
  • Industrial activity and global trade are exceeding earlier projections. In the advanced economies, the broad-based increase in investment amid the steady growth in consumption is raising growth prospects.
  • In Asia, growth is expected to be driven by domestic activity and stronger external demand.
  • Risks to the global growth outlook arise mainly from political and policy uncertainties in the major economies, geopolitical and financial market developments, and volatility of commodity prices.

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