: Bank Negara Malaysia’s decision to hold the Overnight Policy Rate at 3.0 per cent in its last Monetary Policy Meeting of this year is in line with consensus expectations and will help to build market confidence, according to economists.
Williams said the move to maintain the rate should be a relief to borrowers that costs of borrowing are not higher and will support consumer spending, which is needed when external factors are difficult. Williams said the decision has already had a positive effect on the ringgit, which reached RM4.75 to the US dollar today compared to RM4.79 two days ago.
“Already, the Purchasing Managers’ Index has been hovering below the 50-point demarcation line for 14 months in a row, suggesting that business sentiment is mostly leaning towards the cautious side,” he said.