PUTRAJAYA: Bank Negara has the authority to decide on the overnight policy rate (OPR) itself without the interference of the government, says Economy Minister Rafizi Ramli (pic).
He said the right and power of Bank Negara needed to be fully implemented while the government through the Economy Ministry and the Domestic Trade and Cost of Living Ministry would carry out their tasks to reduce the effects of inflation.
"We (the government) take a different approach for us to check and balance and not to interfere in the affairs of Bank Negara.
"Each carries out its own duty," he said in a media conference after attending an Engagement Session with state-level heads of department on the People’s Income Initiative (IPR) here on Thursday (March 9).
Bank Negara’s Monetary Policy Committee (MPC) in its meeting on Thursday announced maintaining the OPR at 2.75%.
On IPR, Rafizi said the government was targeting the participation of 190 local authorities (PBT) as part of the strategic group in the preparation of the ecosystem of the initiative.
"The participation of PBT will assist to expedite the implementation of IPR nationwide especially for the hardcore poor, poor and B40 groups," he said.
On Feb 26, the government announced IPR with a target of 100,000 participants, aimed at raising the income of the three groups and thus assisting them to get out of the poverty line set at RM1,900 per month. - Bernama