The Ministry of Finance (MOF) said it welcomes Bank Negara Malaysia (BNM)’s Monetary Policy Committee’s decision to hold the overnight policy rate (OPR) at 3%, saying the move is in line with global economic developments, as well as domestic inflation.
“The global economic outlook is affected by the risk of global growth slowing down, as most central banks remain tight on monetary policy, coupled with China’s slower-than-expected economic recovery,” the ministry said in a statement on Thursday (July 6), adding that domestic inflation remains stable on a decline.
Nonetheless, the MOF said the government is confident that Malaysia’s economy will continue to grow in 2023, supported by declining unemployment and increasing economic activity, especially in the tourism sector.
“With the current OPR level at 3%, monetary policy remains accommodative to support economic growth,” it added.
Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim, who also heads the MOF, suggested that banks should remain vigilant of difficulties faced by individual borrowers and small- and medium enterprises, and immediately provide loan restructuring and rescheduling for those facing financial issues.
“Borrowers can get free advice and loan repayment assistance service through the Credit Counselling and Debt Management Agency (AKPK),” the MOF added.
Source: The Edge Markets