KUALA LUMPUR: The decision on Overnight Policy Rate (OPR) will not be solely in tandem with other central banks but rather be more focused on the domestic economic environment, Bank Negara Malaysia governor Tan Sri Nor Shamsiah Mohd Yunus stressed today.
Nor Shamsiah said the Monetary Policy Committee (MPC) would continue to calibrate the monetary policy based on ensuring sustainable domestic growth and price stability, in line with the central bank's mandate.
"I want to stress that one of the things...mainly on social media, we do not set our OPR based on what other central banks' decisions on their monetary policy," she told reporters at a briefing here today.
After Bank Negara's first meeting in January 2023, Bank Negara's MPC decided to keep OPR unchanged at 2.75 per cent after raising the key interest rate for four consecutive times at 25 basis points (bps) each last year.
Earlier, Bank Negara said the decision allowed its MPC to assess the impact of the cumulative past OPR adjustments, given the lag effects of monetary policy on the economy.
It added that at the current OPR level, the stance of monetary policy remained accommodative and supportive of economic growth.
"Further normalisation to the degree of monetary policy accommodation would be informed by the evolving conditions and their implications to the domestic inflation and growth outlook.
"The MPC will continue to calibrate the monetary policy settings that balance the risks to domestic inflation and sustainable growth," it added.
