Bank Negara maintains OPR at 3 % cent

Bank Negara Malaysia (BNM) will maintain the Overnight Policy Rate (OPR) at three per cent. The central bank said global economic and financial conditions registered improvements since the previous Monetary Policy Committee (MPC) meeting. \"Stress in the international financial markets has been partially alleviated by the introduction of measures to address the European sovereign debt crisis. \"In North America, there has been tentative signs of improvements in the economy. Notwithstanding these improvements, growth in the advanced economies remains subdued,\" the central bank said in a statement. In Asia, while growth continued to be supported by domestic demand, the growth momentum had moderated amid a slowdown in trade activity. In the domestic economy, the central bank said latest indicators and surveys of businesses pointed to continued expansion in private consumption and business spending. \"Going forward, domestic demand will continue to drive the expansion of the Malaysian economy. Private consumption will be supported by stable employment conditions, income growth and public sector measures,\" it said, adding that investment activity would be supported by domestic-oriented industries, the commodity sector and the public sector. However, the overall growth momentum in 2012 is expected to moderate largely due to the weaker external environment. \"Headline inflation is expected to moderate in 2012. Nevertheless, upside risks to inflation could emerge arising from the risk of supply disruptions and the possible financialisation in commodity markets, which would result in higher energy and commodity prices,\" the statement said. BNM also said in the MPC\'s assessment, while global financial conditions have improved, downside risks to the global economy remained. \"High global commodity prices continue to pose risks to inflation. The MPC will continue to carefully assess these evolving conditions and their implications on the overall outlook for growth and inflation,\" it said. The next MPC meeting will be held on May 11 and not May 3 as scheduled earlier.