That's right! BNM Keeps OPR Unchanged

<p>&nbsp;In line with widespread expectations, Bank Negara Malaysia (BNM) decided to maintain the overnight policy rate (OPR) at 3.00%.</p><p><br /></p><p>These are the details of the follow-up statement from BNM following the decision.</p><p><br /></p><p>The global economy continues to be weighed down by persistent core inflation and higher interest rates.</p><p>Slower-than-expected growth in China is weighing on the global economy.</p><p>Global core inflation remains above historical averages, although core inflation continues to moderate.</p><p>For most central banks, the monetary policy stance is likely to remain tight.</p><p>The outlook remains dependent on downside risks especially in major economies due to geopolitical tensions, inflation and a sharp tightening in financial market conditions.</p><p>In Malaysia, the economy in the second quarter was affected by slower external demand and falling commodity production.</p><p>Further growth this year will continue to be driven by domestic spending amid a challenging external environment.</p><p>Household spending continues to be supported by a favorable labor market.</p><p>Domestic financial conditions also remain conducive to financial intermediation amid sustained credit growth.</p><p>Moderating trends in both headline and core inflation are expected to continue in the second half of 2023.</p><p>Risks to the inflation outlook remain subject to changes to domestic policies such as subsidies and price controls, global commodity prices and financial market developments as well as core inflation.</p><p><br /></p><p>At current levels, the stance of monetary policy is slightly accommodative and remains supportive of the economy.</p><p><br /></p><p>However, remain alert to ongoing developments to inform assessments of the outlook for inflation and domestic growth.</p><p><br /></p><p>The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth in stable price conditions.</p>