As expected, Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) raised the Overnight Policy Rate (OPR) by 25 basis points to 2.25% on 4 March. This was the first increase in more than a year, after leaving it unchanged for the seventh time and since February 2009, in a move to normalise interest rates from the current unprecedented low levels to prevent financial imbalances from building up. This is especially the case given that the economy has turned around in the 4Q of last year and at a stronger-than-expected pace, and is expected to improve further in 2010. At the current OPR rate, the stance of monetary policy, however, continues to remain accommodative and supportive of economic growth.
Economic Highlights : Bank Negara Begins To Normalise Monetary Conditions - 05/03/2010
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