KUALA LUMPUR: Bank Negara Malaysia maintained the overnight policy rate (OPR) at 2.75% and said monetary policy would continue to remain accommodative and supportive of economic growth.
In a statement issued after the monetary policy committee (MPC) meeting on Friday, Nov 12, it said the 'current level of OPR as appropriate and consistent with the latest assessment of the economic growth and inflation prospects'.
BNM added the monetary policy would continue to remain accommodative and supportive of economic growth.
Domestic financial conditions remain orderly, the central bank said, but cautioned there would be greater vigilance on potential risks arising from large and volatile capital flows.
BNM said growth in the global economy has moderated in the third quarter, with a sustained divergence in the growth performance of the advanced and emerging economies.
In the region, the recovery continues, although the pace of economic growth has moderated arising from a weakening of external demand.
'International financial market conditions have become more volatile with increased capital flows to emerging markets. This shift in global liquidity has brought with it risks to macroeconomic and financial stability in the emerging market economies,' the central bank said.
On the Malaysian economy, it said recent indicators on exports and external-related sectors affirmed the earlier expectations for growth to moderate in the third quarter. Nevertheless, domestic demand has provided strong support to growth.
'Going forward, overall growth will continue to be well supported by domestic economic activity. Private consumption will benefit from the favourable employment conditions, firm commodity prices and accommodative financing environment, while the expansion in private investment is expected to be driven by increased capital spending in the domestic-oriented sectors,' it said.
BNM said while domestic headline inflation moderated in September to 1.8%, it expected prices are expected to rise at a modest pace in the coming months in view of the rising global commodity and food prices.
Inflation was however expected to remain moderate going into 2011.
In a statement issued after the monetary policy committee (MPC) meeting on Friday, Nov 12, it said the 'current level of OPR as appropriate and consistent with the latest assessment of the economic growth and inflation prospects'.
BNM added the monetary policy would continue to remain accommodative and supportive of economic growth.
Domestic financial conditions remain orderly, the central bank said, but cautioned there would be greater vigilance on potential risks arising from large and volatile capital flows.
BNM said growth in the global economy has moderated in the third quarter, with a sustained divergence in the growth performance of the advanced and emerging economies.
In the region, the recovery continues, although the pace of economic growth has moderated arising from a weakening of external demand.
'International financial market conditions have become more volatile with increased capital flows to emerging markets. This shift in global liquidity has brought with it risks to macroeconomic and financial stability in the emerging market economies,' the central bank said.
On the Malaysian economy, it said recent indicators on exports and external-related sectors affirmed the earlier expectations for growth to moderate in the third quarter. Nevertheless, domestic demand has provided strong support to growth.
'Going forward, overall growth will continue to be well supported by domestic economic activity. Private consumption will benefit from the favourable employment conditions, firm commodity prices and accommodative financing environment, while the expansion in private investment is expected to be driven by increased capital spending in the domestic-oriented sectors,' it said.
BNM said while domestic headline inflation moderated in September to 1.8%, it expected prices are expected to rise at a modest pace in the coming months in view of the rising global commodity and food prices.
Inflation was however expected to remain moderate going into 2011.
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