KUALA LUMPUR: The stance of monetary policy in 2022 remains accommodative and supportive of sustainable economic growth in the environment and price stability.
According to Economic Outlook 2023, this was so as the pre-pandemic Overnight Policy Rate (OPR) was much higher at 3.0–3.25 per cent.
The OPR was increased three times in May, July, and September 2022 by Bank Negara Malaysia to a total of 75 basis points (bps) to 2.5 per cent from its historical low of 1.75 per cent held since July 7 this year.
The report noted that the government reduced the level of monetary accommodation following strong domestic growth prospects in an environment of moderate inflationary pressures.
Furthermore, the Monetary Policy Committee of Bank Negara Malaysia has emphasised that the pace of interest rate normalisation would be implemented in a measured and gradual manner to ensure that the market could adjust accordingly, the report said.
The report said domestic financial system remained resilient, supported by strong governance and prudent risk management practices, despite the strengthening of the US dollar against major currencies and challenging global growth prospects.
Moreover, Malaysia's Capital Market Masterplan 2021-2025 and Financial Sector Blueprint 2022-2026, which outline the visions and strategies for developing the nation's financial sector, will further enhance the overall financial market performance in line with the evolving economic and financial landscape.