news

HSBC Global Research now expects BNM to maintain OPR this year

KUALA LUMPUR (March 3): HSBC Global Research, which earlier projected a cut in the Overnight Policy Rate (OPR) in the first quarter of 2021, is now of the view that Bank Negara Malaysia (BNM) is likely to keep the rate unchanged at 1.75% this year.

In a note yesterday, HSBC said it had previously called for the central bank to deliver one last 25-basis point cut to the OPR at the Monetary Policy Committee meeting on March 4.

Chief economist (ASEAN) Joseph Incalcaterra said the recent fall in Covid-19 cases, the gradual easing of restrictions, the earlier-than-expected start to the vaccine drive, upbeat data and the government's pledge for "targeted support", all suggested a reduced likelihood for a rate cut.

"Nevertheless, we believe that the decision on March 4 will be a close call, with a non-negligible chance of easing, given the sharp hit to 2021 growth, owing to the lockdown measures.

"Moreover, should conditions unexpectedly and meaningfully deteriorate, BNM remains one of the few central banks in the region that could easily provide more monetary policy support," he said.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
SHARE
RELATED POSTS
  1. EPF i-Sinar withdrawals to have positive impact on economy, says BNM
  2. Online retail sales almost doubled during pandemic, says BNM
  3. Private consumption dropped by 4.3% in 2020 but expected to rebound 8% in 2021