Bank Negara Malaysia has maintained the overnight policy rate OPR at 3.25 per cent after the two-day monetary policy committee – MPC meeting which ended today.
BNM said, at the current OPR level, the degree of monetary accomodativeness is consistent with the intended policy stance.
The Central Bank said, the MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation.
The MPC meeting is the fifth held this year and the second chaired by newly-appointed governor Datuk Nor Shamsiah Mohd Yunus.
The Central Bank will hold another MPC meeting on NOV 8, 2018.
In a statement today, Bank Negara said, supply disruptions in the mining and agriculture sectores led to more moderate growth in the second quarter 2018.
On the demand side, growth remained supported by private sector activity with further impetus from net exports.
Looking ahead, BNM said private consumption, which has boosted by the tax holiday, would continue to be driven by steady wage and employment growth.
According to the Central Bank, investment activity is projected to be underpinned by continue capacity expansion in key sectors, particularly in export-oriented industries, driven by favourable demand and efforts to enhance automation.
Public sector spending, however, is expected to weigh on growth as the goverment embarks on repriotisation of expenditure.
The impact of changes in the consumption tax policy on headline inflation will be transitory and lapse towards the end-2019.
Bank Negara said, underlying inflation is nevertheless expected to remain relatively stable.
The Central Bank added that headline inflation stood at 0.9 per cent in July 2018.