Moody’s: OPR decision due to inflation pressures

“Bank Negara noted several central banks are expected to adjust monetary policy settings ‘at a faster pace’, hinting at concerns over capital outflows and the weakening ringgit,” Moody’s Analytics added.

PETALING JAYA: Bank Negara’s surprise decision to increase its overnight policy rate (OPR) by 25 basis points to 2% from 1.75% came on the back of rising inflation pressures, says Moody’s Analytics.

In its “Asia Pacific Economic Preview” for the week of May 16-20, 2022 released yesterday, the agency said that the Russian invasion of Ukraine, together with China’s zero-Covid policy, has caused supply-chain disruptions and an uptick in global commodity prices.