BNM To Maintain OPR At 2.75 Pct On Thursday - Moody's Analytics

KUALA LUMPUR, Sept 1 (Bernama) -- Moody’s Analytics expects Bank Negara Malaysia (BNM) to keep its overnight policy rate (OPR) at 2.75 per cent at its next monetary policy meeting this Thursday.

In its Asia Pacific Weekly Highlights and Preview research note last Friday (Aug 29), Moody’s Analytics said the central bank made a 25 basis points OPR cut in July as a pre-emptive move in the face of an increasingly uncertain external environment.

“Since then, industrial production and export figures have come in better than expected. 

“A potential rate cut by the US Federal Reserve in September, together with subdued headline inflation, would create room for BNM to loosen monetary policy if the external situation deteriorates,” it said.

On July 9, BNM announced that the ceiling and floor rates of the OPR corridor were correspondingly reduced to three per cent and 2.5 per cent, respectively, following the rate cut.

The central bank last kept the OPR at 2.75 per cent in March 2023.

The OPR was increased to three per cent in May 2023.

-- BERNAMA