COVID–19 NEWS   Owners of premises in buildings allowed to determine protocol on wearing of face mask at their venue - Johor Exco | Italy greenlights Omicron-adapted COVID-19 booster shots | New COVID-19 cases down 16.9 pct last week | Japan to simplify COVID-19 airport quarantine procedures | EMA endorses Omicron-adapted COVID-19 vaccines | 

BNM should increase OPR aggressively - Manulife

22/09/2022 05:26 PM

KUALA LUMPUR, Sept 22 (Bernama) -- Bank Negara Malaysia (BNM) should react at a more “aggressive pace” in terms of increasing the overnight policy rate (OPR), said Manulife Investment Management.

Head of asset allocation for Asia Luke Browne said since the inflation rate in Malaysia is still considered low compared to other countries, he would prefer to see aggressive, fast-paced interest rate hikes and move forward.

“Clearly that has to be held in the context of the current situation, you need clarity of data, ensuring that it is the right decision and then move aggressively. So, yes, I sit in the camp of fast and hard,” he said at today’s Manulife’s 2022 fourth quarter investment outlook virtual media briefing.

BNM increased the OPR by 25 basis points to 2.50 per cent at its fifth Monetary Policy Committee meeting on Sept 8, 2022.

Meanwhile, head of macro strategy for Asia Sue Trinh said Malaysia is likely to be the beneficiary within the region from both the food and energy shock and potential liquidity shocks due to the country’s inflation volatility remaining modest.

She said the volatile environment in the country reduces the pressure on BNM to maintain an aggressive monetary policy, and the opening of international borders also supports the country’s economic recovery.

Malaysia’s Consumer Price Index increased by 4.4 per cent year-on-year (y-o-y) to 127.9 in July 2022 compared to 122.5 in the same month of the preceding year.

The food index, meanwhile, increased by 6.9 per cent and remained the main contributor to the rise in inflation during the month.

Commenting on the risks that could affect Malaysia’s economic growth, Trinh said that risks could still exist, including domestic political uncertainty that may pose a threat to the implementation of fiscal policies to support growth.

“Malaysia is also exposed to the potential of a global economic recession considering that the country is an exporter to the world’s major economies such as the United States, China and Europe,” she said.



Bernama is the trusted source of reliable real-time comprehensive and accurate news for both the public and media practitioners. Our news is published at ; BERNAMA TV on: Astro Channel 502, unifi TV Channel 631, MYTV Channel 121 IFLIX; and Bernama Radio broadcasting locally on FM93.9 in Klang Valley, Johor (FM107.5), Kota Kinabalu (FM107.9) and Kuching (FM100.9).

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter :, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2022 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy