KUALA LUMPUR: Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) has decided to reduce the Overnight Policy Rate (OPR) to 2.75 per cent from 3.0 per cent as a pre-emptive measure to secure improving growth trajectory amid price stability. “This could cause a resurgence of financial market volatility and weigh on the global growth outlook,” BNM said in its first Monetary Policy Statement for the year here, today. Following the reduction in the OPR, the ceiling and floor rates of the corridor of it were correspondingly reduced to 3.00 per cent and 2.50 per cent, respectively. Headline inflation is expected to average higher this year from 0.7 per cent in 2019 but remains modest. “Underlying inflation is expected to remain broadly stable, reflecting the continued expansion in economic activity and the absence of strong demand pressures,” it said.

Source: New Strait Times January 22, 2020 08:15 UTC