Told you all already meh.
Ha ha ha.
Written by Joseph Chin
Thursday, 04 March 2010 17:57
KUALA LUMPUR: Bank Negara Malaysia has raised the Overnight Policy Rate (OPR) by 25 basis points to 2.25% at its monetary policy committee (MPC) meeting on Thursday, March 4 as the economic recovery is firmly established.
It said the domestic economy has since improved significantly and is now on a path of recovery. Given this improved economic outlook, the MPC decided to adjust the OPR towards normalising monetary conditions and preventing the risk of financial imbalances that could undermine the economic recovery process.
"At the new level of the OPR, the stance of monetary policy continues to remain accommodative and supportive of economic growth," it said.
Bank Negara said in the domestic economy, the stronger growth performance in the fourth quarter of 2009 affirms that the economic recovery is firmly established.
"Going forward, growth is expected to strengthen further, supported by domestic demand and continued improvement in external demand, particularly from the regional economies," it said.
Bank Negara said the OPR was reduced to historic lows in early 2009 as a key measure to avert a severe and fundamental economic downturnn but "these conditions no longer prevail".
On inflation, the central bank expected prices would gradually increase during the year, reflecting the prevailing economic conditions and taking into account possible adjustments in administered prices.
While external factors, including rising global commodity and food prices, may exert some additional upward pressure on domestic prices, it expected inflation to remain moderate in 2010.
As for the floor and ceiling rates of the corridor for the OPR, they are correspondingly raised to 2% and 2.50% respectively, it said.
