Bank Negara maintains overnight policy rate at 1.75%

KUALA LUMPUR – The Monetary Policy Committee of Bank Negara Malaysia has kept the overnight policy rate at 1.75% as the global economy continues to recover, supported by manufacturing and trade activity.

The central bank said labour market conditions have also improved in many countries, although several countries reintroduced measures to curb ongoing Covid-19 resurgences, causing some moderation in the pace of recovery in domestic activity, especially services.

Inflation remains elevated in a number of countries, driven by both supply and demand factors, it said.

“Going forward, continued progress in vaccination coverage, advancements in vaccine efficacy, and the availability of antiviral treatments will allow for better management of the pandemic, hence, supporting global growth prospects.

“The global growth outlook will continue to be affected by uncertainties over the emergence of new variants of concern, risks of prolonged global supply disruptions, and risks of heightened financial market volatility amid adjustments in monetary policy in major economies,” it said. – Bernama, January 20, 2022