KUALA LUMPUR, Jan 23 — Maybank Investment Bank Bhd (Maybank IB) has maintained its forecast for the overnight policy rate (OPR) at 3.00 per cent this year to support domestic growth amid external headwinds.
This decision was amid uncertainties surrounding United States President Donald Trump’s policy moves and upside risk to, albeit manageable, domestic inflation.
In a research note today, it said that although it projects a higher inflation rate this year at 3.0 per cent compared to 1.8 per cent in 2024, the increase is mainly due to cost-push factors, which reflect the much-needed structural and fiscal reforms.
These include the long-overdue adjustments including the higher labour costs from the minimum wage hike, foreign workers’ multitier levies, and the mandatory Employees Provident Fund contribution, the RON95 petrol subsidy rationalisation, the increases in local government taxes, and the potential review in Tenaga Nasional Bhd’s base electricity rate in July.
Similarly, Hong Leong Investment Bank (HLIB) has also maintained its expectation for Bank Negara Malaysia to keep the OPR at 3.00 per cent through 2025, adopting a wait-and-see stance.
It expects inflation to remain manageable, with upside risks depending on the extent of spill-over effects from domestic policy measures.
— Bernama
