Guan Eng in no position to judge us, says Annuar

 

Former finance minister Lim Guan Eng should know the difference between the central bank’s role and that of the anti-inflation task force, said Annuar Musa.

PETALING JAYA: Bagan MP Lim Guan Eng has been told off for demanding the dissolution of the government’s anti-inflation task force because of an interest rate increase by Bank Negara Malaysia.

Annuar Musa, who heads the task force, said Lim was in no position to judge the effectiveness of the task force.

Lim, as a former finance minister, should know that Bank Negara, as monetary policymaker, makes decisions without government interference, he said.

However, the task force had a more specific role, to focus on price increases, carry out research and investigations, and deal with manufacturers, wholesalers, and retailers.

“The task force is intended to complement the government’s role as fiscal policymaker and that of the central bank as monetary policymaker,” said Annuar.

Lim was in no position to claim that the task force was “ineffective, incompetent and irrelevant” merely because the central bank decided to increase the overnight policy rate (which determines the inter-bank interest rate).

“He has no right to be the judge of the task force’s effectiveness. Only the people can decide whether the task force is a failure or not because they are the ones benefiting from its establishment,” he said in a statement.

Lim, who is DAP chairman, had said this morning that the rise in the OPR was due to inflationary pressures, and disproved Annuar’s claim that inflation was under control.

Annuar said Bank Negara’s decision to raise the OPR was driven by the country’s strong economic growth supported by the private sector.

The rate was increased to 2.5%, the third consecutive rate increase this year. The central bank said inflationary pressures remained high because of higher commodity prices and tight labour markets.

Record rise in eurozone interest rates

Earlier today, the European Central Bank announced a record rise in eurozone interest rates as it seeks to fight inflation, the BBC reported.

All its key rates were raised by three-quarters of a percentage point and the central bank warned that it was likely to raise rates again later this year. The bank had raised interest rates in July, its first increase in more than 11 years. - FMT