KUALA LUMPUR: Bank Negara will ensure that the monetary policy stance remains conducive to sustainable domestic economic growth in the long term amid price stability.
In its annual report 2023 released yesterday, Bank Negara said foreign exchange and monetary operations will also continue to ensure sufficient liquidity in the foreign exchange, money and government bond markets.
“They will complement our other policies to ensure the smooth functioning of domestic financial markets and financial intermediation.
“Bank Negara is committed to collaborating closely with our stakeholders on relevant policy measures, especially structural reforms,” it added.
The central bank said these efforts would not only address immediate economic challenges, but also enhance Malaysia’s economic resilience in the years ahead.
The central bank said that after four consecutive overnight policy rate (OPR) increases in 2022, the Monetary Policy Committee (MPC) decided to keep the OPR unchanged at 2.75% in the January and March 2023 meetings.
The central bank said this allowed the MPC to review the cumulative impact of the 2022 OPR increases on the economy, as monetary policy changes take some time to fully influence economic activity.
“The assessment showed no signs of excessive tightening in the economy. Rather, the domestic economy continued to expand, with moderating unemployment and continued expansion of household spending,” it said. — Bernama