Bank Negara Malaysia Monetary Policy Committee Decision

Embargo : Not for publication or broadcast before 1800 on Friday, 20 January 2006

20 Jan 2006

On 20 January 2006, at its first meeting for the year 2006, Bank Negara Malaysia's Monetary Policy Committee MPC decided to leave the Overnight Policy Rate OPR unchanged at 3 percent.

Malaysia's economic growth is expected to gain momentum in 2006, with the risk of inflation still remaining. Going forward, Bank Negara Malaysia will continue to assess developments in the domestic and international economy and their implications for the medium term prospects for growth and inflation.

Monetary Policy Statement

Embargo : Not for publication or broadcast before 1800 on Wednesday, 22 February 2006

22 Feb 2006

Bank Negara Malaysia today announced that the Overnight Policy Rate OPR is raised by 25 basis points to 3.25 percent. The ceiling and floor rates of the corridor for the OPR are correspondingly increased to 3.50 percent and 3.00 percent respectively.

Malaysia's economic growth strengthened in the second-half of 2005 and is expected to gain momentum in 2006, sustained by private sector demand and strong economic growth in the global and regional economies. Inflationary conditions have remained, mainly on account of higher energy prices and rising costs. While inflationary pressures are not expected to intensify, the rate of inflation is expected to remain in the region of the current levels for some time.

The change in the OPR is intended to align monetary conditions to the current environment. The stance of monetary policy continues to remain supportive of economic activity. Going forward, monetary policy would respond to new developments that have implications for the medium term prospects for price stability and sustainable economic growth.

1. What are the main differences between them?

2. Is there any changes in the tone on the economic outlooks such as global economy, domestic economy, inflation, monetary policy stance, etc? If yes/no, explain.