Zeti not giving any hints on key rate

Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz yesterday declined to comment on the whether there would be adjustments to the Overnight Policy Rate (OPR) at its next monetary policy meeting.

Analysts said that the market would have to wait and see the impact of the increase in petrol and diesel prices on inflation as there had been moderating factors and influences on the economy.

The government's move to adopt cost-cutting measures and the people's move to be more prudent could ease the pressure on inflation, analysts said.

Some local financial institutions have raised their lending rates, analysts said.

Zeti was responding to reporters on the sidelines of the 6th Group of Eight Developing Islamic Countries Summit in Kuala Lumpur yesterday.

The central bank's policy meeting is scheduled for later this month. The OPR was kept unchanged at 3.5 per cent at its last meeting.

Inflation, as measured by the consumer price index, was at a 22-month high of 3.8 per cent year-on-year in May. - Bernama

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