Bank Negara holds rate on expectation of higher inflation


Close collaboration: Klibor was introduced in June 1987 as an official indicator of the conditions in the interbank money market. The rates that the Klibor contributors submit for Klibor setting indicate the rates that they are willing to lend ringgit funds for the relevant tenors to interbank players, and are mainly used as reference for other products such as the floating leg of interest rate swaps, options, futures and structured products.

PETALING JAYA: Bank Negara is maintaining the benchmark overnight policy rate (OPR) at 3% on expectation that inflation will average higher this year due to stronger oil prices.

Inflation as measured through the consumer price index was up 1.8% in December from the same month a year ago and slightly lower than economists’ expectations. Headline inflation averaged 2.1% last year.

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