News about BNM

MBSB Research noted that BNM struck a “slightly more confident view” on Malaysia’s economic prospects at its September meeting, compared to the more cautious tone in July that prompted the pre-emptive cut to 2.

“Despite external risks, BNM remains upbeat on domestic demand, supported by a strong labour market, policy measures, and sustained investment from infrastructure and development initiatives,” RHB Investment Bank said.

“I think the central bank wants to wait and see whether the July rate cut will support economic growth.

Malaysian REITs would still leverage on robust domestic spending, lower bond yields and active inorganic growth strategies, according to RHB Investment Bank Bhd.

Australia and New Zealand Banking Group (ANZ Research) in a note said BNM has historically only made back-to-back cuts during major shocks such as the Covid-19 pandemic or the Global Financial Crisis.

About half of 23 economists polled predict a cut from 3%, while the rest expect the central bank to stand pat.

"If the Fed stays on hold for longer, or the unwinding of fuel subsidies sends inflation too high, BNM may be content to keep the OPR at 3%.

BNM noted that while the global economy is still expanding, the recent US tariffs and retaliatory measures have negatively impacted the outlook for global trade and growth.

“Continued observations of preferences for more flexible tenancy contracts and hybrid work arrangements suggest adjustments in supply still have some way to go.

Overall outstanding housing loans grew by 6.