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Bank Negara expected to hold interest at 3%
by hlk Tue 06 Sep 2011, 20:33
KUALA LUMPUR: Bank Negara is expected to stay on the conservative side and keep its overnight policy rate (OPR) on hold at 3% at its Monetary Policy Committee (MPC) meeting this Friday, said HSBC Global Research.
In a statement yesterday, its Asian economist, Wellian Wiranto, said the global uncertainties that held Bank Negara back in July had not been resolved.
“Thus, caution about global growth risks would trump the desire to see rates higher for now, and Bank Negara will most likely hold the policy rate unchanged at 3% on Sept 8,” he said.
On whether Bank Negara would increase OPR at its final meeting for the year in November, Wiranto said it would be again very much dependent on whether the cliff-hanger global atmosphere dissipated by then.
At the last MPC meeting in July, Bank Negara had decided to maintain the OPR at 3% after rising it for the first time this year by 25 basis points in May.
Wiranto said while the domestic portion of the economy would help buffer Malaysia from any potentially sharp global downturn to some extent, it remained a fact that it was one of the highest beta economies in the region, with exports being in excess of 100% of its gross domestic product.- Bernama
In a statement yesterday, its Asian economist, Wellian Wiranto, said the global uncertainties that held Bank Negara back in July had not been resolved.
“Thus, caution about global growth risks would trump the desire to see rates higher for now, and Bank Negara will most likely hold the policy rate unchanged at 3% on Sept 8,” he said.
On whether Bank Negara would increase OPR at its final meeting for the year in November, Wiranto said it would be again very much dependent on whether the cliff-hanger global atmosphere dissipated by then.
At the last MPC meeting in July, Bank Negara had decided to maintain the OPR at 3% after rising it for the first time this year by 25 basis points in May.
Wiranto said while the domestic portion of the economy would help buffer Malaysia from any potentially sharp global downturn to some extent, it remained a fact that it was one of the highest beta economies in the region, with exports being in excess of 100% of its gross domestic product.- Bernama
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