Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy Rate (OPR) at 1.75% after the Monetary Policy Committee (MPC) meeting was held today.
According to a statement issued by BNM, the global economy is seen to continue to recover, driven by increases in manufacturing and export activities.
However, BNM said, the recent increase in Covid-19 cases and preventive measures have affected economic activity in several key economic sectors.
The statement added that the immediate implementation of a large-scale vaccination program together with continued policy support, is expected to enhance global growth prospects.
"For Malaysia, the increase in Covid-19 cases and the introduction of targeted measures will affect the recovery momentum for the fourth quarter of 2020.
"As a result, growth for 2020 is expected to be lower in the initial projection range," the statement said.
BNM explained that for 2021, the reintroduction of stricter preventive measures will have a worse impact than what was experienced in 2020 with the growth trajectory expected to improve from the second quarter onwards.
"The increase will be driven by growth in global demand, shifting public and private sector spending following continued support for policy measures and high production from existing and new manufacturing and mining facilities," the statement said.
