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Monetary Policy Statement

Ref No : 01/07/07 26 Jan 2007 Embargo : Not for publication or broadcast before 1800 hours on Friday 26 January 2007

At its meeting today, Bank Negara Malaysia’s Monetary Policy Committee (MPC) decided to leave the Overnight Policy Rate (OPR) unchanged at 3.50 percent.

The Malaysian economy is expected to maintain a steady growth path in 2007. Some weakening in the international economic conditions could affect export growth. The economic growth momentum is however expected to be sustained by domestic demand, supported by both private and public spending.

Inflation is expected to be contained in 2007 due to lower import prices and expansion of domestic capacity. Cost driven price pressures are also likely to be moderate.

Based on this assessment, the current level of the OPR is consistent with the medium term outlook for growth and inflation.

Bank Negara Malaysia
26 Jan 2007

© Bank Negara Malaysia, 2007. All rights reserved.