PETALING JAYA: Bank Negara Malaysia (BNM) has been urged not to further increase its overnight policy rate (OPR) as past efforts had little effect in quelling growing inflationary pressures.
In a statement, former finance minister Lim Guan Eng said raising the OPR would instead adversely affect the people’s socio-economic wellbeing, the domestic investment climate and the country’s post-pandemic economic growth facing pressure from rising prices.
The Bagan MP said increasing interest rates would unnecessarily add on to the costs of individual loans on houses and vehicles, business costs, cash flows of traders and cost of funds of investors.
BNM and Putrajaya, he said, should be helping businesses not harming businesses, especially small, medium enterprises (SMEs) struggling to survive and revive their business in the difficult post-Covid economic environment.
The DAP lawmaker was addressing rumours that BNM is expected to hike the OPR by 25 basis points this week.
He added that global inflation is cost-push, caused by supply chain disruptions as a result of sanctions imposed following the Ukraine war and the Covid-19 lockdowns in China.
Source: https://www.thesundaily.my/local/lge-bnm-should-stop-hiking-opr-as-it-has-no-impact-on-inflation-MK9783349