Monetary Policy Committee
The primary objective of monetary policy in Malaysia is to maintain price stability while giving due regard to developments in the economy. Under the Central Bank of Malaysia Act 2009, the Monetary Policy Committee (MPC) of Bank Negara Malaysia is responsible for formulating monetary policy and the policies for the conduct of monetary policy operations. The MPC decides on the policy interest rate, the Overnight Policy Rate (OPR), to influence other interest rates in the economy.
In carrying out this mandate, the MPC determines the direction of monetary policy based on its assessment of the balance of risks to the outlook for both domestic inflation and growth. The MPC also monitors risks of destabilising financial imbalances given their implications for the prospects of the economy. The MPC meets at least six times a year to decide on the OPR and publishes the Monetary Policy Statement (MPS) following each meeting to explain its decisions.
The MPC comprises the Governor, the Deputy Governors, and not less than three but not more than seven other members, including external members who are appointed by the Minister of Finance upon the recommendation of the Bank＊s Board Governance Committee. The membership of the MPC seeks to bring together a diversity of expertise and experience that is critical for sound monetary policy decision-making.
