KUALA LUMPUR, May 11 - At the Monetary Policy Committee (MPC) meeting today, Bank Negara Malaysia decided to maintain the Overnight Policy Rate (OPR) at 3.00 percent.
While the global economy continues to recover, developments in the most recent period have increased the risks to global growth. Stress in the international financial markets has re-emerged following rising policy uncertainties and renewed concerns over the sovereign debt crisis in the euro area. Economic activity in Europe also continues to be weighed down by the ongoing fiscal consolidation, impaired financial intermediation and weak labour market conditions. In North America, recent economic data have been mixed, indicating uncertainty in the pace of the economic recovery. In Asia, while economic activity continues to be supported by domestic demand, the growth momentum is affected by the slowdown in international trade activity.
While the global economy continues to recover, developments in the most recent period have increased the risks to global growth. Stress in the international financial markets has re-emerged following rising policy uncertainties and renewed concerns over the sovereign debt crisis in the euro area. Economic activity in Europe also continues to be weighed down by the ongoing fiscal consolidation, impaired financial intermediation and weak labour market conditions. In North America, recent economic data have been mixed, indicating uncertainty in the pace of the economic recovery. In Asia, while economic activity continues to be supported by domestic demand, the growth momentum is affected by the slowdown in international trade activity.
While the Malaysian economy is affected by the global developments, domestic demand has continued to support growth, driven by firm consumption and investment activity. Looking ahead, this trend is projected to continue. Private consumption is supported by the stable employment conditions, income growth and public sector measures. Investment activity is mainly led by the domestic-oriented industries, the commodity sector and the public sector.
Source: EBIC GROUP