Bank Negara Malaysia Maintains Overnight Policy Rate; Downside Risks to Outlook Remain

The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM) has maintained its overnight policy rate at 1.75%, noting that it considered its monetary policy stance to be ‘accommodative and appropriate’.

In a statement issued on the 20th of January 2021, the MPC added that changes to Malaysia’s monetary policy going forward would depend on new data and information and the implications on the overall outlook for domestic growth and inflation. BNM stated that it hoped to use policy levers appropriately to create enabling conditions to support and sustain an economic recovery.

BNM noted that although 2021’s near-term growth would be affected by the strict containment measures; the impact would be less severe than 2020. The current movement co...