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 has performed well during the first half of 2006, sustained by robust domestic demand and strong global economic growth. While domestic conditions remain favourable, uncertainties have emerged in the external environment arising from sustained high energy prices, geopolitical risks and possible moderation of global growth. Recent statistics indicate that domestic inflation has peaked, and is expected to be lower for the remaining part of the year. At this stage, there are also no signs of second round effects and undue wage pressures. However, cost-driven pressures on prices remain, arising from high commodity and oil prices. Monetary policy will continue to balance the risks to inflation and growth. The future stance of monetary policy would therefore depend on Bank Negara Malaysia's assessment of new information regarding the domestic and international environment and their implications on the Malaysian economy.