KUALA LUMPUR, Sept 5 – Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) has decided to maintain the overnight policy rate (OPR) at 3.00 per cent at its meeting on Thursday.

In a statement, the central bank said that at the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects.

BNM also said that the global economy continues to expand amid resilient labour markets and continued recovery in global trade. 

“Global growth is expected to be sustained by positive labour market conditions, moderating inflation and less restrictive monetary policy.

“Global trade recovery is expected to continue, supported by both electrical and electronics (E&E) as well as non-E&E products,” BNM said.

It said that the growth outlook remains subject to downside risks, mainly from further escalation of geopolitical tensions, volatility in global financial markets, and slower growth momentum in major economies.

BNM said that the Malaysian economy expanded by 5.1 per cent in the first half of 2024 (1H 2024), driven by resilient domestic expenditure and higher export activity. 

“Going forward, exports are expected to be further lifted by the global tech upcycle given Malaysia’s position in the semiconductor supply chain, as well as continued strength in non-E&E goods. 

“Tourist spending is expected to continue to increase,” it said, adding that employment and wage growth, as well as policy measures, remain supportive of household spending.