Bank Negara can raise OPR gradually, says economist

UOB Group senior economist Julia Goh said that at 3%, the OPR was at a neutral level, which is not too restrictive and sufficient to handle inflationary risk.

KUALA LUMPUR: Bank Negara can afford to be more gradual in increasing the overnight policy rate (OPR) after raising the interest rate by 25 basis points to 3% following its Monetary Policy Committee meeting in May, said an economist.

UOB Group’s senior economist, Julia Goh, said that at 3%, the OPR was at a neutral level, which is not too restrictive and sufficient to handle inflationary risk.