KUALA LUMPUR: Moody’s Analytics anticipates Bank Negara Malaysia will maintain its overnight policy rate at 2.75 percent during Thursday’s monetary policy committee meeting.
The research firm stated in its Asia Pacific Weekly Highlights and Preview note that July’s 25 basis point cut represented a pre-emptive move against growing external uncertainties.
“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.”
BNM reduced the OPR corridor ceiling and floor rates to three percent and 2.5 percent respectively following July’s adjustment.
The central bank previously maintained the 2.75 percent rate in March 2023 before increasing it to three percent two months later. – Bernama
