The Monetary Policy Committee of Bank Negara Malaysia (BNM) has held the Overnight Policy Rate (OPR) at 3.00% during Thursday’s meeting.

The central bank stated that the global economy continues to grow, supported by robust labour markets and ongoing recovery in global trade.

“Looking ahead, global growth is expected to be sustained as headwinds from tight monetary policy and reduced fiscal support will be cushioned by positive labour market conditions and moderating inflation.

“At the current OPR level, the monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects,” BNM stated.

Moreover, the central bank observed that global trade is strengthening as the global tech upswing gains momentum. Meanwhile, both global headline and core inflation have shown a slight decline in recent months, prompting some central banks to begin easing monetary policies, The Sun Malaysia reports.

“The growth outlook remains subject to downside risks, mainly from further escalation of geopolitical tensions, higher-than-anticipated inflation outturns, and volatility in global financial markets,” the bank added.

Regarding the Malaysian economy, the central bank stressed that the latest indicators suggest continued robust economic activity in the second quarter of this year, supported by resilient domestic spending and improved export performance.

Furthermore, tourist arrivals and spending are expected to increase further, thanks to ongoing employment and wage growth. Additionally, policy measures will continue to bolster household spending.

“Investment activity would be supported by the ongoing progress of multi-year projects in both the private and public sectors, the implementation of catalytic initiatives under the national master plans, as well as the higher realisation of approved investments.

“The growth outlook is subject to downside risks from weaker-than-expected external demand and larger declines in commodity production,” the central bank added.