PUTRAJAYA, January 6 – The increase in the Overnight Policy Rate (OPR) is subject to the decision of Bank Negara Malaysia (BNM). The Prime Minister, Datuk Seri Anwar Ibrahim said, based on existing laws and regulations, the National Bank has the right to make decisions. However, he said, the government through the Ministry of Finance can discuss the matter.
“Follow the current rules and laws, this (determination) of the OPR is BNM’s decision, not the Ministry of Finance’s decision. I can discuss but that is BNM’s right (to decide),” he said in a press conference after the cabinet meeting at the Prime Minister’s Office here on Wednesday. He added that monetary policy is indeed under BNM’s specialization.
Last December reported that CGS-CIMB Research (CGS-CIMB) expected two more increases in the Overnight Policy Rate (OPR) by 25 basis points each to 3.25 percent, compared to the current 2.75 percent due to inflationary pressure expected to remain this year. According to CGS-CIMB Economist, Nazmi Idrus, the strong core inflation growth in November last year reflected the robust domestic demand situation in the month.
