KUALA LUMPUR, July 11 — Bank Negara Malaysia’s move to raise the interest rate will not significantly affect investments in Malaysia, a minister said today.
Datuk Seri Mustapa Mohamed, minister of international trade and industry, also described Bank Negara's 25 basis points increase raising the overnight policy rate to 3.25 per cent as minimal.
"In our view, that's not going to have much impact on investments, and certainly not on investor sentiment or confidence," Mustapa told a press conference after the launch of the ministry's 2013 report here today.
"Malaysia continues to be an attractive destination for investments," he added.
Yesterday, Bank Negara raised the OPR for the first time in three years, as expected by economists due to strong economic growth and inflation.
The OPR determines the determination of interbank loans and affects other interest rates such as the base lending rate (BLR) other interests on consumer banking services.
International news wire Reuters reported analysts as saying that they expect interest rates to increase again before year end due to strong growth and inflationary pressure.
