Bank Negara governor Tan Sri Nor Shamsiah Mohd Yunus noted that the Bank Negara would closely monitor the domestic and international economic environment to determine the OPR. She said the current rate is 2.75%, which still appears relatively low compared to the pre-epidemic period.

No OPR Target Set

Image Credit: Business Today

Nor Shamsiah Mohd Yunus noted that the Bank Negara did not set any target for OPR as it needs to assess the changing factors of the economic environment when deciding on the overnight policy rate.

Shamsiah also said that inflation and core inflation are moderate this year, with inflation expected to be at 2.8% to 3.8%.

She also said that the phenomenon of high global price costs is expected to slow down but is still higher than the pre-epidemic level. The strong domestic market demand and the gradual improvement of the labor market will also lead to maintaining a high level of inflation

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