KUALA LUMPUR, Nov. 6 (Xinhua) -- Malaysia's central bank on Wednesday maintained the country's overnight policy rate (OPR) at 3 percent.
Bank Negara Malaysia (BNM) said in a statement 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. The MPC will ensure that the monetary policy stance remains conducive to sustainable economic growth amid price stability," it said.
For the Malaysian economy, BNM said the latest indicators point towards sustained strength in economic activity driven by resilient domestic expenditure and higher export activity.
"Going forward, exports are expected to be supported by the global tech upcycle, continued strength in non- electrical and electronics (E&E) goods and higher tourist spending. Employment and wage growth, as well as policy measures, remain supportive of household spending," it said.
It also noted the robust expansion in investment activity would be sustained by the progress of multi-year projects in both the private and public sectors, the higher realization of approved investments, as well as the implementation of catalytic initiatives under the national master plans.
These investments, supported by higher capital imports, will raise exports and expand the productive capacity of the economy, it added.
The bank also highlighted that Budget 2025 measures will provide additional support to growth.
As for Malaysian ringgit, the bank opined that Malaysia's favorable economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to provide enduring support to the ringgit.
"Looking ahead, the narrowing interest rate differentials between Malaysia and the advanced economies is positive for the ringgit," it said. ■