ID :
23824
Sat, 10/11/2008 - 08:48
Auther :
Shortlink :
https://oananews.org//node/23824
The shortlink copeid
NO PLAN YET TO ADJUST OPR AS FINANCIAL SYSTEM STILL STRONG
KUALA LUMPUR, Oct 10 (Bernama) -- Malaysia's financial system is still
strong and resilient, and hence the central bank, Bank Negara Malaysia, has no plan yet to adjust the overnight policy rate (OPR), Deputy Finance Minster Kong Cho Ha said Friday.
"Our rate is very low. At this point of time, Bank Negara has no plan
to adjust the rate. But nevertheless Bank Negara is monitoring the situation and will make a decision when the need arises," he told reporters after launching
the MCA ICT Resource Centre (MIRC) SME Development Blueprint
(2008-2012).
He was responding to a question on whether Bank Negara will follow the move
by other central banks, including those in the United States, Europe and China,
on Wednesday in reducing their interest rates.
Asked whether Malaysia will still able to attract investors if the OPR
remained at 3.5 percent, Kong said: "We will make the right decision when the
time comes. At this moment, I think Bank Negara feels that there is no need
yet."
"Our financial system still very strong and resilient and there is still a
lot of funds in the financial market," he said.
According to him, the central bank is monitoring the current global
economic environment because it has been changing very fast, especially in
recent weeks.
He also said the country's economic fundamentals remained strong as the
banking system was not affected by the US subprime crisis.
Concerning the recent poor performance of Bursa Malaysia, Kong said
although the local stock market was affected, the situation was not as bad as
other stock exchanges around the world.
On the possibility of the downtrend, he said: "Investors are adopting a
wait-and-see attitude and foreign fund managers are pulling out due to being
short of funds in other parts of the world. They have to pull out from Malaysia
to cover their positions elsewhere."
The benchmark Kuala Lumpur Composite Index (KLCI) closed lower by 34.88
points at 934.01 today, after opening 23.80 points lower at 945.09. The index
had moved between 931.79 and 949.68 throughout the day.
-- BERNAMA
strong and resilient, and hence the central bank, Bank Negara Malaysia, has no plan yet to adjust the overnight policy rate (OPR), Deputy Finance Minster Kong Cho Ha said Friday.
"Our rate is very low. At this point of time, Bank Negara has no plan
to adjust the rate. But nevertheless Bank Negara is monitoring the situation and will make a decision when the need arises," he told reporters after launching
the MCA ICT Resource Centre (MIRC) SME Development Blueprint
(2008-2012).
He was responding to a question on whether Bank Negara will follow the move
by other central banks, including those in the United States, Europe and China,
on Wednesday in reducing their interest rates.
Asked whether Malaysia will still able to attract investors if the OPR
remained at 3.5 percent, Kong said: "We will make the right decision when the
time comes. At this moment, I think Bank Negara feels that there is no need
yet."
"Our financial system still very strong and resilient and there is still a
lot of funds in the financial market," he said.
According to him, the central bank is monitoring the current global
economic environment because it has been changing very fast, especially in
recent weeks.
He also said the country's economic fundamentals remained strong as the
banking system was not affected by the US subprime crisis.
Concerning the recent poor performance of Bursa Malaysia, Kong said
although the local stock market was affected, the situation was not as bad as
other stock exchanges around the world.
On the possibility of the downtrend, he said: "Investors are adopting a
wait-and-see attitude and foreign fund managers are pulling out due to being
short of funds in other parts of the world. They have to pull out from Malaysia
to cover their positions elsewhere."
The benchmark Kuala Lumpur Composite Index (KLCI) closed lower by 34.88
points at 934.01 today, after opening 23.80 points lower at 945.09. The index
had moved between 931.79 and 949.68 throughout the day.
-- BERNAMA
