KUALA LUMPUR, Aug 16 — Bank Negara Malaysia (BNM) governor Datuk Abdul Rasheed Ghaffour today said that the Overnight Policy Rate (OPR) was maintained at 3 per cent during the Monetary Policy Committee (MPC) meeting with inflation expected to rise in the second half of 2024 due to the recent changes in diesel subsidies.
He said the MPC believes that the current systems are still supportive of the economy.
“Our baseline forecast suggests that Malaysia’s growth will continue to be strong, driven by resilient consumer spending and ongoing improvements in exports.
“As expected, inflation is likely to rise in the second half of this year, partly due to the recent diesel subsidy rationalisation,” he said during a press conference on the release of 2Q2024 GDP Statistics here today.
He further said that the expected increase in inflation should be manageable, as measures are in place to limit the impact of subsidy adjustments on business costs.
He also emphasised that these key structural policies are essential for maintaining a favourable domestic economic environment, which will in turn strengthen economic stability and sustainability.
“As these policy changes will influence our outlook, our focus remains on assessing the short- and medium-term impacts on domestic inflation and growth.
“As always, our monetary policy will remain forward-looking and data-driven,” he added.
He also noted that the MPC will keep assessing changing conditions and implications for inflation and domestic growth, ensuring that the monetary policy stance supports sustainable economic growth while maintaining price stability.
