KUALA LUMPUR (March 3) Bank Negara Malaysia’s Monetary Policy Committee (MPC) reduced the Overnight Policy Rate, OPR by 25 basis points to 2.50% as Covid-19 weakens global economy in 2020.
“The reduction in the OPR is intended to provide a more accommodative monetary environment to support the projected improvement in economic growth amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.
“Global economic conditions have weakened in the recent period. The ongoing Covid-19 outbreak has disrupted production and travel activity, especially within the region. This has also led to greater risk aversion, resulting in tighter financial conditions and a resurgence in financial market volatility.
In the statement, Bank Negara said the ceiling and floor rates of the corridor of the OPR were correspondingly reduced to 2.75% and 2.25%, respectively.
“For 2020, private and public sector activities will be supportive of growth. Household spending is expected to grow at a slower pace amid moderate employment and income growth. Investment activity is projected to record a modest recovery, underpinned by ongoing and new projects, both in the public and private sectors.
BNM said the trajectory of headline inflation will be dependent on global crude oil and commodity prices and the timing of the lifting of the domestic retail fuel price ceilings.
“Underlying inflation is expected to be more moderate amid limited demand pressures despite the continued expansion in economic activity, BNM said.
For more property news, kindly browse: Trusted Property Agency Malaysia 2020