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 current level of the OPR is consistent with the medium term outlook for growth and inflation.

Global and regional growth is expected to remain favourable in 2007. The Malaysian economy is expected to experience sustained growth, with stronger growth estimated for the second-half of the year. The growth would be mainly private sector driven, with the public sector having a strong supportive role. The expansion is expected to be more broad-based across all economic sectors.

The outlook on inflation is relatively benign with average inflation expected to be significantly lower than in 2006. In addition, the lower international oil prices and moderating inflation in our trade partner economies are also expected to contribute to an environment of more stable domestic consumer prices.