KUALA LUMPUR: Bank Negara Malaysia has today decided to increase the overnight policy rate (OPR) by 25 basis points to three per cent.
The ceiling and floor rates of the corridor of the OPR are correspondingly increased to 3.25 per cent and 2.75 per cent respectively.
In a statement today, Bank Negara said with the domestic growth prospects remaining resilient, its Monetary Policy Committee (MPC) had judged that it was timely to further normalise the degree of monetary accommodation.
"With this decision, the MPC has withdrawn the monetary stimulus intended to address the Covid-19 crisis in promoting economic recovery.
"In light of the continued strength of the Malaysian economy, the MPC also recognises the need to ensure that the stance of monetary policy is appropriate to prevent the risk of future financial imbalances," it added.
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Bank Negara said at the current level, the monetary policy stance is slightly accommodative and remains supportive of the economy.
"The MPC will continue to ensure that the monetary policy stance remains consistent with the outlook of domestic inflation and growth," it added.
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