Citing how Bank Negara Malaysia (BNM) said the OPR hike was due to inflationary pressures, the Bagan MP said this essentially disproved Annuar’s claim that inflation was under control.

“BNM sees the inflation as serious enough to warrant hiking up the OPR despite the inherent risks in sacrificing economic growth and Covid-19 recovery efforts for the second half of the year, and increasing borrowing costs for individuals and businesses.

“BNM has indirectly dismissed Annuar’s anti-inflation efforts as of no consequence with the consumer price index (CPI) rising by 4.4% in July compared to 3.4% in June 2022, the month Annuar was appointed the task force’s chairman.

“Since BNM is now relying on the monetary tool of raising interest rates to fight inflation, there is no need to retain the special committee to wage ‘jihad’ on inflation,” he said in a statement.

Lim, who is a former finance minister, said the task force will only have a role to play if Prime Minister Ismail Sabri Yaakob chaired it himself.

Annuar, who is the communications and multimedia minister, leads the anti-inflation task force which also comprises finance minister Tengku Zafrul Aziz, agriculture and food industries minister Ronald Kiandee, domestic trade and consumer affairs minister Alexander Nanta Linggi, economic affairs minister Mustapa Mohamed and Chief Secretary Zuki Ali.

Yesterday, BNM raised the OPR by 25 basis points to 2.50%, the central bank’s third consecutive rate hike.

Despite continued easing in global supply chain conditions, it said inflationary pressures have remained high due to elevated commodity prices and tight labour markets.