OPR Maintained For Fourth Straight Meeting

Economic Research	3 March 2017
Malaysia
Economic Update
OPR Maintained For Fourth Straight Meeting The Central Bank’s MPC kept the OPR unchanged for the fourth straight meeting at 3.00% on 2 March, as expected. We are of the view that BNM is likely to maintain the OPR at the current level of 3% in 2017 on account of : 1.  Continued weakness in the MYR; 2.  Expectations of sustained economic growth; 3.  Higher inflationary pressures. Although inflationary pressure has increased, it is mainly cost-push in nature. Thus, it does not warrant a tightening of the monetary policy by the Central Bank. Economist:  Vincent Loo Yeong Hong  | +603 9280 2172 Economist:  Aris Nazman Maslan  | +603 9280 2184