Thursday, 4 March 2010

BNM Moves OPR to 2.25 Percent

Following up on it's earlier statement to normalise monetary conditions, the Monetory Policy Committee of Bank Negara Malaysia (BNM) today decided to increase the bank's Overnight Policy Rate to 2.25%. Such move would result in the increase in the interest rates on bank borrowings in Malaysia.


In a statement today, BNM also predicts that the general price level will be on the upwards trend in line with higher economic growth resulting in moderate inflation. Such move indicates BNM's confident of the recovering economy. 

While higher interest rates may increase cost of capital, higher economic activities would provide more opportunities for enterprises to experience growth. However, better understanding of the landscape and effective implementation of strategic plans would be among the critical ingredients towards business sustainability.
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