OPR hike encourages prudent govt spending, says Rafizi

PUTRAJAYA: Bank Negara Malaysia’s (BNM) decision to raise the overnight policy rate (OPR) will encourage the government to manage the national expenditure prudently, says Economy Minister Rafizi Ramli.

Commenting on the central bank’s decision to raise the OPR by 25 basis points to 3% last week, he said that the OPR hike will increase the cost of loans, thus inadvertently, the government will have to manage its expenditures more efficiently.