KUALA LUMPUR, Sept. 5 (Xinhua) -- Malaysia's central bank has maintained the overnight policy rate (OPR) at 3 percent.
Bank Negara Malaysia (BNM) said in a statement on Thursday that at the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects.
"The Monetary Policy Committee (MPC) remains vigilant to ongoing developments to inform the assessment on the domestic inflation and growth trajectories going into 2025. It will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability," said the bank.
According to the bank, the latest indicators point towards sustained strength in economic activity driven by resilient domestic expenditure and higher export activity.
Going forward, it expects exports to be further lifted by the global tech upcycle given Malaysia's position in the semiconductor supply chain, as well as continued strength in non-electrical and non-electronics goods.
"Tourist spending is expected to continue to increase. Employment and wage growth, as well as policy measures, remain supportive of household spending," it said.
It said the robust expansion in investment activity would be sustained by the progress of multi-year projects in both the private and public sectors, the implementation of catalytic initiatives under the national master plans, as well as the higher realization of approved investments.
The higher intermediate and capital imports will further support export and investment activity, it added.
For the year as a whole, the bank expects average headline and core inflation to remain within the earlier projected ranges and are unlikely to exceed 3 percent.
Looking ahead, Malaysia's positive economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to provide enduring support to the ringgit, it said. ■