BNM likely to keep OPR at 3% on Thursday — Moody’s Analytics

• “While the New Zealand and Philippine central banks have lowered interest rates in recent weeks, BNM will likely leave the OPR at 3% through to 2025," Moody’s Analytics said in its Economic Weekly Highlights and Preview note last Friday.

KUALA LUMPUR (Sept 2): Moody’s Analytics expects Bank Negara Malaysia (BNM) to leave its overnight policy rate (OPR) at 3% on Thursday.

While that is still below where it was in early 2019, Moody's Analytics said BNM is likely to leave rates on hold through to 2025.

The central bank will give an update on its monetary policy settings on Thursday.

“While the New Zealand and Philippine central banks have lowered interest rates in recent weeks, BNM will likely leave the OPR at 3% through to 2025," Moody’s Analytics said in its Economic Weekly Highlights and Preview note last Friday.

It further said interest rate hikes in Malaysia are not as aggressive as those elsewhere in the region, and the country’s benchmark rate is still lower than it was in early 2019 (3.25%).

“Having been one of the worst performing currencies in Asia last year, the ringgit has been appreciating in recent months.

“BNM will likely want to sustain that trend by keeping interest rates steady,” said Moody's Analytics.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!