SHAH ALAM - Former deputy finance minister, Datuk Seri Johari Ghani is set to deliver a talk on the Overnight Policy Rate (OPR) to shed light on the factors influencing currency fluctuations.
He said several factors must be considered to raise the OPR.
"There are various factors that need to be addressed and it's not just a single factor.
"I believe that Bank Negara (BNM) would have access to all these factors," he told Sinar Daily after visiting Karangkraf Media Group here today.
He also noted the upcoming discussion on this issue, saying, "I will be giving a talk to explain why the currency fluctuates and which factors should be taken into account."
Recently, AmBank Group said there is no urgency for BNM to revise upwards the OPR going forward as Malaysia’ headline inflation and services inflation continued their downward trend.
Malaysia’s core inflation is modest so far due to slower hiring activities and the lag effect from the 125 basis points (bps) cumulative rate hikes, there is no urgency for the interest rates to be increased higher from this point forward, said the bank’s economic division.
"Services inflation is also on a downward trend, declining to 3.9 per cent year on year (y-o-y) (April 2023: 3.6 per cent y-o-y),” it said in a research note today.
"Thus, the OPS is likely to stay at 3.00 per cent for the whole of 2023,” said AmBank.