BNM, DOSM asked to provide explanation for OPR increase

PUTRAJAYA: The Special Task Force on Jihad Against Inflation has asked Bank Negara Malaysia (BNM) and the Department of Statistics Malaysia (DOSM) to provide clarification to the people on the justification for the increase in Overnight Policy Rate (OPR), said its chairman Tan Sri Annuar Musa.

Annuar, who is also Communications and Multimedia Minister, said that the people needed to be given a proper understanding of the decision to increase the OPR by 25 basis points to 2.25 per cent yesterday.

Yesterday, BNM's Monetary Policy Committee decided to raise the OPR, which is the benchmark for loans and savings, by 25 basis points, or 0.25 per cent, to 2.25 per cent. It is the second increase this year, after the OPR was raised 25 basis points to 2.00 per cent in May.

"I hope we can all understand that the body that determines the interest rate is an independent body.

"They have their reasons, but they also need to provide an explanation so that the public can understand the justification for why certain actions are taken by BNM," Annuar said in a press conference after chairing a Special Task Force on Jihad Against Inflation meeting, here today.

-- BERNAMA