KUALA SELANGOR: The ringgit exchange rate depended on the country’s economic fundamentals and is also influenced by interest rates in the United States (US), Minister of Finance Tengku Datuk Seri Zafrul Tengku Abdul Aziz said.
He said the US Federal Reserve’s (US Fed) announcement on Wednesday, which raised the benchmark lending rate by 0.75 percentage points, has elevated the lending rate in the world’s largest economy to four per cent compared with Malaysia’s current level of 2.5 per cent.
"So, the ringgit rate and all of this will depend on the economic fundamentals and interest rates prevailing in the US,” he told reporters after officiating the Karnival Kerjaya Jamin Kerja Keluarga Malaysia Kuala Selangor 2022 here today.
Nevertheless, he said the overnight policy rate (OPR) is an independent decision by Bank Negara Malaysia (BNM).
It was reported previously that investors were waiting for the decision on Malaysia’s interest rates, to be announced later today, which are expected to be increased to 2.75 per cent from 2.5 per cent.
On his candidacy, representing Barisan Nasional, for the Kuala Selangor parliamentary seat, Tengku Zafrul said those who labeled him as a "heavenly candidate” should look at his effort as the Minister of Finance as proof of his ability that focuses on the plight of the rakyat.
"I only have one comment, read the Budget 2021 and 2022 and see what the government, through the Finance Ministry and its related agencies, have done and read the budget speeches, which showed that the government cares about the people,” he added. - Bernama
