RHB IB Expects BNM To Maintain OPR At 3.0 Pct

KUALA LUMPUR, July 4 (Bernama) -- Bank Negara Malaysia (BNM) is expected to maintain the Overnight Policy Rate (OPR) at 3.0 per cent at its Monetary Policy Committee meeting on July 9, with the balance of risks tilted towards one cut, said RHB Investment Bank (RHB IB).

In a research note today, RHB IB said that any adjustment would depend on potential pre-emptive cuts should United States tariffs exacerbate.

It added that the extent to which this injects downside risks to Malaysia’s second-half 2025 gross domestic product (GDP) could potentially drag growth below 4.0 per cent.

RHB IB said that most other central banks are also expected to maintain their policy parameters unchanged in July, including Indonesia (July 16), China (July 21), the Eurozone (July 24), and the US Federal Reserve (July 30).

“Similarly, the Monetary Authority of Singapore (MAS) is expected to keep its current policy stance.

“However, rising market volatility, coupled with a very strong Singapore dollar nominal effective exchange rate levels, could prompt policymakers to widen the policy band to around 3.0 per cent from the current 2.0 per cent,” it added.

-- BERNAMA