PUTRAJAYA: Any proposals to increase the overnight policy rate (OPR) as the solution in addressing the depreciation of the ringgit would only burden the rakyat.
Government spokesman Fahmi Fadzil said increasing the OPR rate would only cause the interest rate in Malaysia to fluctuate.
Fahmi, who is also the Communications Minister, said the government left the decision of the OPR rate to Bank Negara Malaysia.
"Increasing the OPR rate would not help the rakyat. At this time, the Prime Minister has also presented his calculations that when we increase the OPR rate, the interest rate would also increase and he is well aware of this issue.
"I think that is not a good move at this time, but we will leave the decision to Bank Negara," he said at a press conference, here, today.
Earlier today, it was reported that the ringgit had reached a new record low against the Singapore dollar just a day after 3.56 to the Singapore dollar.
Fahmi said the Cabinet meeting held today, however, did not discuss the depreciating ringgit.
He said analysts also projected the ringgit to strengthen this year, adding that the government would expedite efforts to do so.
This includes expediting export processes and investment approvals.