KUALA LUMPUR, Sept 4 — Market players are anticipating that Bank Negara Malaysia (BNM) will maintain the overnight policy rate (OPR) at 2.75 per cent today, as keeping the rate unchanged would ensure that households and businesses continue to pay the same amount of instalments.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said that keeping the OPR unchanged would indicate the current rate is conducive to economic stability and growth
Banks use the OPR as a benchmark when quoting deposit and lending rates to customers, and noted that lending growth had been stabilising at around 5.4 per cent in July from 5.1 per cent in June.
“Hence, the lending and borrowing activities in the banking sector are actually business as usual despite changes in the OPR,” he told Bernama.
Therefore, at the current juncture, Afzanizam sees the Malaysian economy as stable, with the labour market remaining in a state of full employment and inflation risk remaining fairly manageable.
“Perhaps the OPR can be maintained at 2.75 per cent throughout the year,” he said.
Meanwhile, IPP Wealth Managers Ltd investment strategist and country economist Mohd Sedek Jantan said BNM is likely to keep the OPR steady at 2.75 per cent at today’s Monetary Policy Committee (MPC) meeting, in line with efforts to support domestic economic growth.
“With headline inflation at 1.2 per cent and unemployment at 3.0 per cent, this approach ensures policy stability, supports domestic demand, and keeps monetary conditions accommodative without adding inflationary pressure.
“The latest macroeconomic indicators also show resilience, with July exports posting positive growth, reinforcing confidence in Malaysia’s external sector,” he said.
