Bank Negara, statistics department asked to explain OPR increase

The Special Task Force on Jihad Against Inflation has asked Bank Negara Malaysia (BNM) and the Department of Statistics Malaysia to explain to the people the reasons behind the increase in overnight policy rate (OPR), says the task force chairman Annuar Musa.

Annuar, who is also communications and multimedia minister, said the people needed to be given a proper understanding of the decision to increase the OPR by 25 basis points to 2.25% 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%, to 2.25%. It was the second increase this year, after the OPR was raised 25 basis points to 2.00% 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 at a press conference after chairing a Special Task Force on Jihad Against Inflation meeting in Putrajaya today.