Moody’s Analytics expects Bank Negara Malaysia (BNM) to keep its Overnight Policy Rate (OPR) unchanged at 2.75% during its upcoming monetary policy meeting on Thursday.

In its Asia-Pacific Weekly Highlights and Preview note released last Friday, the research firm said BNM’s 25-basis-point cut in July was a cautionary measure to address uncertainties in the global economic environment.

Economic Data and External Conditions

Since the July OPR cut, Malaysia’s industrial production and export performance have turned out stronger than anticipated. Moody’s added that lower headline inflation, coupled with the possibility of a rate cut by the US Federal Reserve in September, provides BNM with policy flexibility should external risks worsen.

OPR Adjustments in 2023

On 9 July, BNM announced that the upper and lower limits of the  OPR were reduced to 3.0% and 2.5% respectively, following the July rate cut.

The central bank last held the OPR at 2.75% in March 2023 before raising it to 3.0% in May 2023.

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• TAGS:
• Bank Negara Malaysia
• BNM
• Monetary Policy Committee
• Moody's Analytics
• OPR
• Overnight Policy Rate