Thursday, January 27, 2011

Bank Negara Malaysia Holds Rate at 2.75%

Bank Negara Malaysia held its key monetary policy rate, the Overnight Policy Rate (OPR), at 2.75 percent. The Bank noted that inflation increased through 2010, driven by rising commodity prices, registering at 2.2% for the year. The Bank sees inflation rising at a 'modest pace' through 2011, driven by rising food and energy prices, but mostly as a result of supply factors, rather than excess demand. The Bank also acknowledged that a 'a build up of liquidity' may need to be addressed through additional policy tools. 


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