Keeping interest rates unchanged sound move


Mohd Afzanizam said whether BNM will hike or maintain the OPR this year “really depends on the duration and severity of the war in the Middle East”.

PETALING JAYA: Bank Negara Malaysia’s (BNM) decision to keep the overnight policy rate (OPR) unchanged is appropriate, despite ongoing global uncertainties, as current price pressures stem largely from supply shocks.

Given the current backdrop of heightened global uncertainty marked by geopolitical tensions, some argue that the central bank should hike rates as a pre-emptive measure to keep inflation in check, particularly as price pressures are expected to rise following the likelihood of further increases in fuel costs.

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