Following the meeting of the monetary policy committee (MPC) today, Bank Negara Malaysia (BNM) decided to maintain the overnight policy rate (OPR) at 3%. This is the same rate set at the beginning of May this year when BNM increases OPR by 0.25%. Before that, OPR was fixed at 2.75% twice in January And Steps are.
“At the current OPR, the monetary policy stance is mildly supportive and remains supportive of the economy. The MPC continues to see limited risks of future financial imbalances,” the central bank said in a statement.
Auto loans are affected by OPR, with higher interest rates making home loans more expensive and potentially harder to get approved. This has an impact on auto sales, with the Malaysian Automobile Association (MAA) saying in January. It is expected that the total industry output in 2023 will decrease after the 2022 record.
BNM also noted that overall inflation has continued to ease amid lower cost factors. “While core inflation has also come under control, it remains above the long-term average amid lingering demand and cost factors,” it added.
