Bank Negara Maintains Overnight Policy Rate At 3 Pct

KUALA LUMPUR, May 9 (Bernama) -- Bank Negara Malaysia today decided to maintain the Overnight Policy Rate (OPR) at three per cent.

Source from (RttNews): http://www.rttnews.com/2113910/malaysia-s-central-bank-keeps-rates-on-hold.aspx?type=alleco
Published: May 10, 2013

Source from (The Malaysian Insider): http://www.themalaysianinsider.com/business/article/bank-negara-maintains-overnight-policy-rate-at-3pc/
Published: May 10, 2013

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=948625
Published: May 10, 2013

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2013/5/10/business/13092897&sec=business
Published: May 10, 2013

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/rup09d/Article/
Published: May 10, 2013

Source from (The Sun Daily): http://www.thesundaily.my/news/693179
Published: May 10, 2013

At the Monetary Policy Committee meeting today, the central bank said the global growth momentum had continued to be modest.

"Latest economic data suggests that the recovery is uneven, while downside risks to global growth prospects remain," it said in a note today.

Bank Negara said growth in the major advanced economies continued to be constrained by ongoing fiscal consolidation, slow recovery in financial intermediation and weak labour market conditions.

In Asia, the central bank said while growth had been affected by weak external environment, domestic demand continued to support growth.

"Despite improvements in international financial market conditions, markets remain vulnerable to setbacks and changes in sentiments.

"In the Malaysian economy, while the external sector is affected by global developments, domestic demand has continued to provide support to growth," it said.

Bank Negara said investments and private consumption have remained firm and going forward, the domestic economy was expected to sustain a steady growth.

"Private consumption is supported by sustained income growth amid stable labour market conditions, while investments are being led by capital spending in the domestic-oriented sectors, and progress in the implementation of infrastructure projects, it said.

The central bank said inflation remained low at 1.5 per cent in the first quarter while inflation was expected to continue to rise during the year.

"It is projected to remain modest," it said.

"Domestic supply and cost factors are expected to contribute to higher prices while externally, the risk of weather-related supply disruptions remains and could raise global food prices.

"Nevertheless, given the modest global growth prospects, pressures from global commodity prices are likely to be contained," it added.

-- BERNAMA