The ceiling and floor rates of the corridor of theOPR are correspondingly increased to 3.25% and 2.75% respectively, BNM said,noting it believes the global economy continues to be driven by resilientdomestic demand.
Most central banks are likely to remain in a tightmonetary policy stance, it said, given that core inflation has persisted abovehistorical averages despite moderating headline inflation.
The globalgrowth outlook remains subject to downside risks, mainly from an escalation ofgeopolitical tensions, higher-than-anticipated inflation outturns, and a sharptightening in financial market conditions including from further stress in thebanking sector, BNM said.
Back to the domestic front, BNM said the latestdevelopments point towards further expansion in economic activity in the firstquarter of 2023 after the strong performance in 2022.
Domestic financial conditions also remain conduciveto financial intermediation, with no signs of excessive tightening affectingconsumption and investment activities. Risks to the domestic growth outlook arerelatively balanced.
Upside risks mainly emanate from domestic factorssuch as stronger-than-expected tourism activity and implementation of projects,including those from the re-tabled Budget 2023, while downside risks stem fromweaker-than-expected global growth and more volatile global financial marketconditions, it added.
In 2022, the banked increased the Overnight PolicyRate four times, from 1.75% to 2.75%./.