Bank Negara Malaysia today announced that the Overnight Policy Rate (OPR) is raised by 30 basis points to 3 percent. The ceiling and floor rates of the corridor for the OPR are correspondingly increased to 3.25 percent and 2.75 percent respectively.

Since our August Monetary Policy Statement, indicators now show that the economy is stronger, and economic activity is expected to gain momentum going into next year. These growth prospects are underpinned by strengthened domestic demand and a supportive external environment.

Inflation has edged up, mainly on account of higher energy prices and other costs. Going forward, while inflationary pressures are not expected to intensify, the rate of inflation is expected to remain at current levels for some time.

Following the adjustment of the interest rate, the level of the OPR continues to be below its neutral level and therefore, the stance of monetary policy remains accommodative and supportive of the economy. Bank Negara Malaysia will closely monitor developments t o ensure that Malaysia continues to have sustainable economic growth in an environment of price stability.