KUALA LUMPUR: Bank Negara Malaysia today said the recent ringgit movements are primarily driven by external factors, and not reflective of the current domestic economic performance and prospects.
The ringgit hit a new low of 3.5333 against the Singapore dollar yesterday.
In its Monetary Policy Commitee (MPC) statement BNM said as the risk of heightened volatility in the global financial and foreign exchange markets remains, it will continue to ensure sufficient liquidity to support the orderly functioning of the domestic foreign exchange market.
Financial institutions continue to operate with strong capital and liquidity buffers, with domestic financial conditions remaining conducive to sustain credit growth.
BNM kept the overnight policy rate (OPR) unchanged at three per cent saying that its monetary policy stance remains supportive of the economy and is consistent with the current assessment of the inflation and growth prospects.
BNM said the MPC remains vigilant to ongoing developments to inform the assessment on the outlook of domestic inflation and growth.
The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability.
