Monday, May 01, 2023

On Labour Day, Lim Guan Eng calls for Bank Negara to maintain OPR


MM:

On Labour Day, Lim Guan Eng calls for Bank Negara to maintain OPR





DAP chairman Lim Guan Eng says only banks will benefit from increasing the OPR and workers, many of whom have personal bank loans, will land with increased borrowing costs and a reduction in disposable income. ― File picture by Hari Anggara

Monday, 01 May 2023 10:35 AM MYT



KUALA LUMPUR, May 1 — Former finance minister Lim Guan Eng called for Bank Negara Malaysia (BNM) to maintain its overnight policy rate (OPR) at the current 2.75 per cent.

The DAP chairman said only banks will benefit from increasing the OPR and workers, many of whom have personal bank loans, will land with increased borrowing costs and a reduction in disposable income.


“The inability to sustain economic growth from raising OPR and the further burden of any higher financial costs may cause small businesses to close and cause unemployment.

“May Day celebrations today would be muted and meaningless if BNM increases the OPR at its meeting tomorrow,” he said in a statement this morning.


He pointed to the reduction of the unemployment rate from 3.6 per cent to 3.5 per cent between January to February of this year, saying that it shows a continued momentum of economic growth in generating income to match the cost of living pressures.


“There is no need for BNM to raise OPR or interest rate now that the March Consumer Price Index (CPI) has eased to 3.4 per cent from 3.7 per cent in February 2023,” he said.

He also called for BNM to stand together with workers.

According to BNM’s website, this year's third Monetary Policy Committee (MPC) will be held tomorrow and the day after (May 2 and 3).

A report by the national news agency Bernama last Friday quoted research houses as saying that BNM is expected to maintain the OPR.

Bank Islam Malaysia Bhd reportedly said that the probability of BNM maintaining the OPR of 2.75 per cent throughout the year is high.


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