Anwar pointed out that a higher OPR ensures that our economy can continue growing and that inflation is controlled.

The higher overnight policy rate will help adjust supply and demand to a more balanced level and reduce the pressure of rising commodity prices.

Higher OPR are not meant to hinder our economic recovery efforts

Higher Opr
Image Credit: Bloomberg

Anwar said that increasing the overnight policy rate is not meant to hinder our economic recovery efforts, but if inflation cannot be controlled, the purchasing power of our low-income groups, retired groups, etc., will collapse due to the sharp rise in prices.

Compared to the impact of a higher OPR, it will have a more serious and widespread impact on the decline in purchasing power caused by rising and runaway inflation.

Anwar pointed out that a higher OPR would prompt people to spend more cautiously while encouraging more savings.

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