Malaysia’s Overnight Policy Rate Kept at 2.75%
January 27, 2011
Policymakers at Bank Negara Malaysia retained a 2.75% key rate, its level for the past half-year. The Monetary Policy Committee doesn’t meet again until March 11. There were three rate hikes of 25 basis points each administered previously in March, May and July of 2010, but the Overnight Policy Rate remains 75 basis points below its pre-recession peak of 3.5%. A statement was released today that, as after the prior meeting in November, reiterated that the rate remains both accommodative and appropriate. Officials noted, however, that a somewhat abundant level of liquidity poses some risk of macroeconomic and financial imbalances in the future, and the hint is made of higher reserve requirements to combat such dangers. CPI inflation of 2.2% in considered benign, and steady growth driven mostly by domestic demand is foreseen in 2011.
Copyright Larry Greenberg 2011. All rights reserved. No secondary distribution without express permission.
Tags: Bank Negara Malaysia
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