OPR likely to stay un­changed

New Straits Times - - Business -

KUALA LUMPUR: Bank Ne­gara Malaysia is likely to keep the Overnight Pol­icy Rate (OPR) un­changed at 3.00 per cent to­day.

Its Mon­e­tary Pol­icy Com­mit­tee will re­lease the lat­est as­sess­ment to­day.

Stan­dard Char­tered Bank ex­pects the pol­icy rates to stay un­changed for now un­less high head­line in­fla­tion has a larger pass-through to core prices.

“As such, we ex­pect the cen­tral bank to keep pol­icy rates un­changed for now, un­less high head­line in­fla­tion has a larger pass-through to core prices.”

It high­lighted im­proved ex­ter­nal de­mand and down­side risks, in­clud­ing pro­tec­tion­ism and the re­cent fall in key com­mod­ity prices.

At 3.00 per cent, AmRe­search said the level was sup­port­ive of the over­all eco­nomic ac­tiv­i­ties as well as the sta­bil­ity of the ring­git.

“The con­tri­bu­tion from do­mes­tic de­mand is poised to re­main sus­tain­able with an im­prov­ing ex­ter­nal trade. It will help lift the over­all eco­nomic ac­tiv­i­ties.”

It ex­pects the Con­sumer Price In­dex to stay high dur­ing the year, driven by cost­push pres­sures. How­ever, the neg­a­tive rate could po­ten­tially ease should the up­wards

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