KUALA LUMPUR, March 5 (Bernama) -- The Monetary Policy Committee (MPC) of Bank Negara Malaysia (BNM), at its meeting today, has decided to maintain the Overnight Policy Rate (OPR) at 3.25 per cent.

BNM said the degree of monetary accommodativeness was consistent with the intended policy stance at the current OPR level.

“Recognising that there are downside risks in the economic and financial environment, the MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation,” it said in a statement.

BNM said the economy grew at a more moderate pace of 4.7 per cent in 2018 and looking ahead, growth was expected to sustain in 2019 with continued support from private sector spending while stable labour market conditions and capacity expansion in key sectors would continue to drive household and capital spending.

Meanwhile, it said support from the external sector was anticipated to soften in tandem with the moderating global growth momentum.

“Global growth momentum is showing signs of moderation amid slowing growth in most major advanced and emerging economies and going forward, unresolved trade tensions remain a key source of risk, affecting global trade and investment activities.

“Tighter global financial conditions and elevated political and policy uncertainty could lead to financial market adjustments, further weighing on the overall outlook,” it added.

-- BERNAMA