PETALING JAYA: Bank Negara is maintaining the benchmark overnight policy rate (OPR) at 3% on expectation that inflation will average higher this year due to stronger oil prices. “Underlying inflation, as measured by the core inflation index, is therefore expected to remain stable,” it said in a statement following a meeting of the monetary policy committee. “The implementation of financial market development measures have provided stability to the domestic foreign exchange market,” it said. Bank Negara cautioned that uncertainties in the global economy, the policy environment and geopolitical developments may result in bouts of volatility in the regional financial and foreign exchange markets. On the external front, the expected improvement in exports will provide some support to growth.

Source: The Star January 19, 2017 23:00 UTC