KUALA LUMPUR: Any proposals to increase the overnight policy rate (OPR) as the solution in addressing the depreciation of the ringgit will only burden the rakyat, government spokesman Fahmi Fadzil said.
Fahmi, who is also Communications Minister, added that increasing the OPR would only cause the interest rate in Malaysia to fluctuate.
The government left the decision of the OPR to Bank Negara Malaysia, he said.
"Increasing the OPR would not help the rakyat. The Prime Minister is well aware of this issue. I think that is not a good move at this time but we will leave the decision to Bank Negara," he added.
Earlier today, it was reported that the ringgit had reached a new low against the Singapore dollar just a day after hitting 3.56.
Fahmi said the Cabinet meeting held today did not discuss the depreciating ringgit.
He, however, said analysts also projected the ringgit to strengthen this year, adding that the government would expedite efforts to do so.
This includes expediting export processes and investment approvals.