OPR Stays At 3 Pct To Ensure Strong Domestic Economy: MOF

KUALA LUMPUR, Nov 9 (Bernama) -- The government's decision to maintain the Overnight Policy Rate (OPR) at three per cent aims to ensure the domestic economy continues to remain strong, said the Ministry of Finance (MOF). The move is also aimed at ensuring a stable inflation rate and efficiency in financial intermediation, it said. "The monetary policy decision also aimed to find the right balance between inflation risk and domestic growth over the medium term. "The policy decision is vital in the efforts to ensure the country's economy continues to record sustainable growth. Additionally, a stable inflation rate will help improve the people's wellbeing," the ministry said in a written reply issued in Parliament here Wednesday. At the Monetary Policy Committee (MPC) meeting on July 13, the government decided to lower the OPR by 25 basis points to three per cent, and maintained the rate at the subsequent meeting in September. The MOF explained that the current OPR is based on a monetary policy that is supportive of the country's economic activities. "The rate is also based on the latest information to ensure the risk of financial imbalances is under control," it said. Moving forward, MOF said the monetary policy will continue to depend on Bank Negara Malaysia's (Malaysia's Central Bank) evaluation, based on the latest data and information, as well as the implications on the prospects for price stability and economic growth over the medium term. -- BERNAMA