BNM keeps OPR at 2.75% amid global uncertainties
KUALA LUMPUR (March 5): Bank Negara Malaysia (BNM) has kept its benchmark overnight policy rate (OPR) unchanged at 2.
KUALA LUMPUR (March 5): Bank Negara Malaysia (BNM) has kept its benchmark overnight policy rate (OPR) unchanged at 2.
KUALA LUMPUR (Feb 5): The government is reviewing whether to renew the preferential withholding tax on dividends from real estate investment trusts (REITs), as the sector is now considered mature and commercially viable, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
The policy rate has remained unchanged since July when BNM sprang a surprise with a 25-basis-point reduction in what the central bank described as a “pre-emptive measure” to support economic growth.
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%.